• BOOST: The Mexican government increased the size of its 3-year old foreign currency program from USD 20 billion to USD 30 billion, as the Mexican peso confronts high volatility derived from the collapse of oil prices along with increasing fears linked to the coronavirus spread.
• NEW: “The Exchange Commission reinforces its commitment to continue evaluating the operating conditions in the foreign exchange market, and if necessary, adopting additional actions”, according to a press release by Mexico’s Finance Ministry and central bank.
• BATTERED: Starting late on Sunday, the Mexican peso’s value against the US dollar was hit in international markets, sliding overnight by as much as 9%, reaching its worst level in three years of 22.02. Later on Monday, the peso recovered to somewhere around 21.10, per ICE Data Services.
• FORECAST: Last week, the Organization for Economic Cooperation and Development (OECD) lowered its 2020 GDP forecast for Mexico to 0.7%, lower than the 1.2% expected in November. The main reason behind the fall was Mexico’s exposure to the coronavirus effect.
