Kaycee LoweKaycee Lowe
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Last week, President Luiz Inacio Lula da Silva forex had called the country's exchange "sacred" and essential as part of the government's cushion of US$200 billion to protect it from the financial crisis.Bank of Mexico President Griff Ortiz forex said afternoon that the bank received 59 bids of US$1.7 billion. It recovered to around 12 to the dollar after the bank's announcement.If spot foreign exchange the peso continues currency to fall more than 2 percent in value from the day before, the bank said it will auction off an additional US$400 million more a day. But he forex mini lots emphasized forex signals that today, "Mexico's banking institutions are solid."Wednesday's currency sale announcement came hours after the peso dropped to a record low of 14 against the U.S. Economic meltdown was hitting forex signals foreign exchange software its occidental neighbor hard. Dollar after its central bank sold US$1.3 billion of its reserves in an auction involving dollars that will eventually be returned to the government.The currency bank also sold an undisclosed amount of dollar reserves in three additional auctions, and that money won't go back to Brazil.It marked the first time since 2003 that Brazil has taken such a step with reserves. forex broker In Brazil, the real finished slightly weaker than the previous day at 2.3 to the U.S. MEXICO CITY -- Mexico's central bank said it was auctioning off US$2.5 billion in reserves to prop up the struggling peso, the banking strongest sign yet that the U.S. Of those, 31 were accepted for a total sale of US$998 million. Mexico's international reserves were at US$84 billion on Friday.Treasury Diplomat Agustin Carstens said the peso devaluation was speculative and "exaggerated."Mexicans should "have confidence that our financial system is healthy and that our currency is, I would say, one of the best options for investment," he told a news conference.The peso has fallen steeply since closing last week at 11.1 to the dollar.Mexico's economy, long dependent on its powerful northern neighbor, had weathered the global crisis with few bumps until the peso's fall. The drop was the first strong sign that Mexico was in for a bumpy economic future. The bank will continue to auction off the rest on Thursday.Ortiz said Mexico's currency market on had fluctuations not seen since 1995, when the country was mired in its own banking crisis. So far we are not too concerned about the effects of depreciation on the inflation outlook.". "If this persists, it may have effects on credit lines to exports, for example. Government officials announced they would revise the 2009 budget to take account of falling oil prices and shrinking credit markets."Undoubtedly, there will be blows from international volatility that will affect us, but stability and equilibrium will be restored precisely because we have healthy fundamentals," Ortiz said.Barclay's Capital analyst Jimena Zuniga said the peso's drop was a response to the drop in commodity prices as well as Mexico's deteriorating growth outlook amid the global economic crisis."We haven't found signs of strains comparable to those of other Latin American economies," he said.
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