MEXICO CITY – Mexico’s central bank will extend its daily auctions of $200 million per day through the end of March to stabilize the badly weakened peso.
The Bank of Mexico said Thursday it will also extend the auction of an additional $200 million each time the peso falls by 1 per cent or more against the U.S. dollar on the preceding day.
Those measures were originally announced In July. The peso has continued to drop since then, falling to about 18.35 per dollar on Monday.
The peso has dropped almost 25 per cent in value in the last year amid falling oil prices.
Mexico had about $177.5 billion in international reserves as of late January, and can also draw on a $70 billion IMF line of credit.