Mexico Boosts Currency Hedge Program to Support Peso

• Mexico’s currency commission will increase a non-deliverable forward hedge program to a maximum of $30 billion from $20 billion.
• The commission comprised of Banco de Mexico and the Finance Ministry moved to support the currency after the peso posted its worst daily drop since Donald Trump’s election in 2016. The Mexican peso trimmed losses after the commission’s announcement.
• The peso slide followed a collapse in global oil prices as the OPEC+ alliance disintegrated into a price war over crude. That along with fears over the spread of the coronavirus put pressure on Mexican assets on Monday.

 (Source: Bloomberg)