The Mexico We Know/Love - Peso Defense Time

♠ Posted by Emmanuel in at 2/04/2009 09:11:00 AM
From CNN comes word of Mexico's return to traditional habits:
The Bank of Mexico auctioned off billions of dollars Tuesday in an attempt to support the faltering Mexican peso. The measure did not have the desired effect, however, with the dollar commanding 14.5 pesos at the end of the day, 45 percent more than in August.

Some observers said the peso could continue falling as long as international markets remain unstable. "The authorities should be very sensitive to these types of situations, which have been recurrent, and should be acting in response," said Carlos Ponce, head of research at Banco Ixe. "But I could not rule out the possibility of even greater change."

He said the economy, beset by crisis, would have a hard time bouncing back from a further fall of the peso, and he was worried that continued difficult times could spark inflation.
Like for Russia and France, it's back to the future, I guess.