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.