Mexico’s central bank sold dollars in Mexico and New York on Thursday Jan. 5 to fight off the peso’s nose dive to record lows amid fears U.S. President-elect Donald Trump’s protectionist policies could further hammer Latin America’s second-biggest economy.
The central bank sold at least $1 billion in U.S. currency in morning trade, four traders told Reuters, asking not to be identified because they were not authorized to speak publicly.
The bank kept the amount confidential.
Mexico’s currency commission said in a separate statement that the move was aimed at providing liquidity and combating recent volatility in the peso, adding that it could not rule out further discretionary intervention to support the currency.
The dollar sales mark the bank’s first currency intervention since February 2016, when it sold $2 billion to prop up the sinking peso. The peso depreciated 20 percent last year alone and was among the world’s worst performing currencies.
Banco Base said in a report following the intervention that the decision was aimed at combating “speculative positions” that had built up against the peso.
Mexico’s peso MXN=MXN=D2 strengthened after the intervention was reported, but trade was choppy and it pared gains to trade flat around 21.48 per dollar after Trump threatened Toyota Motor Corp (7203.T) with a “big border tax” if it followed through on plans to build a new factory in Mexico to build cars for the U.S. market.
To read complete article click here.
more recommended stories
Mexican drag queens fight prejudice in a land of “Machos”
Lady Morgana, a drag queen from.
Shocking photo of drowned father and daughter highlights immigration issue
The man and his 23-month-old daughter.
Pompeo seeks global coalition against Iran
WASHINGTON (AP) — Secretary of State.
Mexico is doing more than the Democrats in Congress to secure our border (Mike Pence)
The Vice President of the United.
How to stop spam on WordPress sites
A frequent problem of sites where.
Falling tree injures five children in Mérida’s Colonia Miguel Hidalgo de Mérida
Mérida, Yucatán, June 24.- A big.
7 illegal Honduran citizens caught at the Mérida airport about to fly north
Mérida, Yuc. June 25.- As part.
Mega sargassum formation threatens the coasts of Cancun
A “Sargasso stain” of 550 kilometers.
Former President Vicente Fox calls to march against AMLO
Former President and Guanajuato resident Vicente.
Are 52 million pesos enough to address the Sargasso issue in Quintana Roo?
The Mexican Navy Secretariat (SEMAR) will.