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UPDATE 1-Mexico finmin-forex measures possible if conditions change
April 9, 2013 / 2:28 PM / 4 years ago

UPDATE 1-Mexico finmin-forex measures possible if conditions change

MEXICO CITY, April 9 (Reuters) - Mexico’s foreign exchange market has enough liquidity, though the country’s exchange commission could take fresh measures if conditions change, Finance Minister Luis Videgaray told local radio on Tuesday.

On Monday, the country’s foreign exchange commission, which is made up of officials from the central bank and the finance ministry, said it would suspend a dollar auction mechanism, in operation since November 2011, because the market is calmer and the peso is firming.

Videgaray said sufficient market liquidity meant that the mechanism to auction dollars on days of sharp peso falls was no longer necessary.

“The liquidity is more than ample at the moment, and there’s no reason to keep this auction mechanism,” he said. “If conditions change, the exchange commission could once again, as it has done before, intervene.”

The peso moved to its strongest level in 20 months earlier on Tuesday after data showed the country’s inflation rate rose more than expected in March, making it harder for the central bank to lower borrowing costs.

The peso rose 0.4 percent to 12.14 pesos per dollar in early trading.

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