Efforts to ease the depreciation of the peso.
On July 31, the Bank of Mexico (Banxico) quadrupled its daily auctions of US dollars to 200 million, due to a significant depreciation of the peso. The central bank stated that it aims to add liquidity to the market and that Mexico's high level of international reserves allows for such action. However, the selling surge will also be profitable for Banxico, and the money raised will probably end up in the government's coffers.
The president will decide whether to re-appoint Agustin Carstens as Banxico governor by the end of the year.
Further peso depreciation could impact on prices, pushing up inflation.
Mexico's stock of international reserves should fall to a figure within the 180-185-billion-dollar range by the end of September.
