Mexico's central bank sells 6.4 billion dollars to protect peso
Submitted by William Kaelin on Fri, 10/10/2008 - 22:50.
The Bank of Mexico sold 6.4 billion dollars in the currency markets Friday, in an ongoing effort to prevent the local peso from depreciating too far, Mexico's central bank said.
On Wednesday, the Bank of Mexico sold 2.5 billion dollars, and promised to keep intervening in the currency markets with some 400 million dollars per day for as long as it took to protect the peso. However, their efforts have so far not had the desired effect, and the Mexican currency continued to slide.
Experts noted that the demand for dollars is increasing as people seek to pay off their debts in the current global financial crisis. They explained that the depreciation of the peso is a consequence of the lack of liquidity in a small currency market.
The German car market is facing its worse downturn, the nation's auto industry association warned Wednesday as the deepening sense of economic gloom in the country leads to a shakeout in the industry and the prospects of big job cuts.
A comedy starring Vince Vaughn and Reese Witherspoon as a couple trying to avoid their families at Christmas debuted in first place over the weekend at North American box offices, according to preliminary studio estimates issued Sunday.