Mexican Central Bank to Provide Some $20 Bln in Currency Hedges to Aid Peso

The Central Bank of Mexico will provide up to $20 billion in currency hedges to aid the national currency that has seriously depreciated over the last months, the bank said in a statement.

MEXICO CITY (Sputnik) — According to the statement, issued on Tuesday, the Central Bank was instructed to launch the liquid exchange program, amounting for some $20 billion, which would cover exchange risks, without resorting to the international reserves.

The bank's statement already led to the growth of the Mexican peso exchange rate, with the currency gaining 1.18% against the US dollar.

The Mexican peso has fallen to record lows since last year. In early January, the exchange rate of peso against the US dollar renewed its historical minimum on in the wake of US President-elect Donald Trump's statements that the country would proceed with the construction of a wall on the border with Mexico.