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Free AccessUSDMXN Spiking As Banxico Reduces Hedge Program
- The FX hedging program was initially installed to promote a more orderly FX market in Feb 2017, at which Banxico placed $5.5bln via various auctions. During COVID in March 2020 additional auctions were announced of $1.99bln to total the program at $7.5bln, with terms of one to twelve months.
- Banxico now deem liquidity to be 'adequate' meaning the Commission have instructed Banxico to reduce the amount of the FX hedging in force gradually, seeking in all time to maintain the orderly operation of the exchange market.
- USDMXN spiking sharply to print 17.10 on the latest headlines before settling back below the 17.00 mark for now.
- The full release (Spanish) is here: https://www.banxico.org.mx/canales/%7B92E3E38B-E9B...
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.