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World

Mexico to auction more dollars to stabilize peso after rapid plunge

Associated Press
Published | Updated

MEXICO CITY – Mexico's central bank will auction off $52 million per day in a bid to stabilize the rapidly devaluing peso.

Authorities said the new auctions will start Wednesday and last through June 8.

The peso has fallen to a historic low amid expectations of interest rate hikes in the United States.

The new auctions will be in addition to a mechanism that offers $200 million to slow the peso's fall when it drops at least 1.5 percent in a single day.

That mechanism has been used twice so far this year. Mexico has over $194 billion in international reserves.

The peso closed Tuesday with an interbank rate of 15.62 per dollar, The previous low of 15.49 was established on March 9, 2009.