Mexico sells more than $1 bn to boost its currency

October 24th, 2008 - 12:49 pm ICT by IANS  

Mexico City, Oct 24 (DPA) Mexico’s central bank has sold more than $1 billion of its foreign exchange reserves to boost its national currency, the peso.The value of the dollar went as high as 14.30 pesos before the bank’s intervention, although it closed at 13.79 pesos.

Mexico’s central bank has sold more than $13 billion since Oct 8, but the price of the dollar continues to rise. It was worth about 11.2 pesos on Oct 1.

For Mexican officials, an acceptable currency rate would be a maximum of about 11.40 pesos to the dollar. The government has promised to intervene in the currency markets with about $400 million per day for as long as necessary to protect the peso.

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