Mexican Peso (MXN) receives a temporary boost from daily auction increase to $3.5 Billion

So far today there have been three auctions. A $3 Billion, a $400 Million and another $3 Billion auction.

Updating the previous Mexican Peso (MXN) post the Mexican Central Bank has increased the amount of the daily auctions from $400 Million up to $3.5 Billion. Record gains in Oil exports, Mexico’s largest export, built up the country’s foreign reserves to $84 Billion, and Cbanker Ortiz has hinted that they will use it to try to give the peso some stability.

The previously announced $400 Million auctions did not have any takers, and were announced desert yesterday due to the high price of the USD. Corporates were not happy with the amount, seen as a pittance compared to the foreign reserves, it is not certain if this new auction will have the desired effect. Global risk aversion and the drop in commodities have depreciated emerging market currencies around the world.

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza