Bank of Mexico sells dollars to stop peso decline

Agustín Carstens, Bank of Mexico governor

The Bank of Mexico will intervene in foreign exchange markets from today, in an effort to curb the recent foreign exchange volatility that has seen the peso drop by almost 6% against the US dollar since mid-November.

According to a joint statement of the central bank and the finance ministry, released yesterday, the institution will auction $200 million on days when the peso loses at least 1.5% of its value against the dollar from the previous close.

This measure – designed to "provide liquidity

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