| | |  Business News | July 2009 
Mexico's Reserves Continue to Shrink
 Notimex
go to original
July 29, 2009
Mexico's international reserves continued to shrink this past week, down from $112 million to $73.51 billion, even after an injection of foreign currencies in the exchange rate market, according to the Bank of Mexico (Banxico).
As of Friday, the reserves had also decreased by $11.92 billion so far this year, from the $85.44 billion in reserves at the end of last year. Banxico said it was scheduled to buy $14 million in foreign currencies from the federal government and $250 million in daily dollar auctions with no minimum price, according to regulations authorized by the National Exchange Commission. This comes despite an increase in the international reserves by other operations totaling $152 million.
International reserves hit their record high of $86.89 billion on July 18, 2008, but have sunk since then after the central bank's injection of dollars in the exchange rate market.
The reserves, along with the credit from the International Monetary Fund and the United States' Federal Reserve swap line, shield Mexico's economy from further global economic deterioration. According to Banxico, the currency base fell 7.54 billion pesos in the past week, to 534.7 billion pesos, or a 17.2 percent decrease so far this year.
The lower demand in the currency base, combined with an increase in international assets, provoked a net domestic credit reduction of 8.3 billion pesos in the past week.
From July 24 to July 29, Banxico carried out actions in the exchange market worth 142.13 billion pesos to compensate for the impact. |
|
| |
Vallarta Weddings
Tell a Friend
Site Map
Print this Page
Email Us