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Mexico extends dollar auctions through September

Mexico extends $52 million daily dollar auctions through September to support peso

Mexico extends dollar auctions through September

MEXICO CITY (AP) -- Mexico's central bank says it will continue to auction $52 million per day through the end of September to stabilize the peso.

The central bank originally announced the auctions in March, when the peso fell to a historic low of 15.62 to $1 amid expectations of interest rate hikes in the United States.

The auctions were originally to run through June 8. The peso traded around 15.30 to $1 on Friday.

But the bank said "it is possible that volatility may continue in international financial markets."

The auctions are in addition to a mechanism offering an auction of $200 million when the peso drops at least 1.5 percent in a single day.

That mechanism has been used twice so far this year. Mexico has about $195 billion in international reserves.

Updated : 2021-09-20 20:06 GMT+08:00