Mexico's central bank sells 6.4 billion dollars to protect peso
Mexico City - The Bank of Mexico sold 6.4 billion dollars in the currency markets Friday, in an ongoing effort to prevent the local peso from depreciating too far, Mexico's central bank said.
On Wednesday, the Bank of Mexico sold 2.5 billion dollars, and promised to keep intervening in the currency markets with some 400 million dollars per day for as long as it took to protect the peso. However, their efforts have so far not had the desired effect, and the Mexican currency continued to slide.
Experts noted that the demand for dollars is increasing as people seek to pay off their debts in the current global financial crisis. They explained that the depreciation of the peso is a consequence of the lack of liquidity in a small currency market. (dpa)
