Mexico steps in to stabilise forex market
New derivatives contracts will be available to all credit institutions, with the first auction scheduled for March 6
The Bank of Mexico has stepped in to stabilise the foreign exchange market, after months of volatility in the peso.
In a statement published on February 21, the central bank announced it would sell up to $20 billion in currency hedges to mitigate the external forces battering the peso.
The bank noted in recent months the exchange rate of the peso to the dollar had shown "high volatility" and said it was therefore taking action to promote "more orderly" operations in the foreign exchange market
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