Mexico's central bank to sell more peso coverage contracts
MEXICO CITY – Mexico's central bank says it will bolster the peso amid concerns U.S. tax changes could reduce investment flows to Mexico.
The Bank of Mexico says it will increase the currency coverage contracts it auctions to cushion the risk of holding pesos.
The bank said Tuesday it will add $500 million in non-deliverable, renewable forwards to its initial offering of $5 billion.
The country's exchange markets have been highly volatile in recent days, and the peso dropped as low as 19.72 per dollar in trading Friday.
The currency has also taken a beating over the last six months from uncertainty related to the renegotiation of the North America Free Trade Agreement.