Mexico Central Bank (Banxico) issues new procedures for daily auctions
The Exchange Commission today announced adjustments to its daily dollars auction. The main reason is that in recent weeks there is a more stable financial market performance.
The main adjustments are:
· To be suspended after November 23, 2015 the daily auctions for US 200 million dollars without a minimum price.
· The effective period for daily auctions with minimum price ranges will continue until 29 January 2016. The mechanism will remain the same as before. 200 million dollars will be auctioned daily if the exchange rate exceeds 1 % yesterdays price FIX.
· In addition, if the $ 200 million auctioned are exhausted, the Bank of Mexico will offer another 200 million, but now at a minimum price of FIX 1.5% above the previous day.
The maximum daily amount to be auctioned will remain 400 million from 23 November 2015 until January 29, next year.
The elimination of the daily auctions with no minimum price caused the peso back to trade above the $ 16.60 per dollar, after it had reached a minimum in the day of $ 16.55.