The peso increases gains against the dollar after Banxico’s decision to maintain the rate

Bank of Mexico (Banxico) He decided keep the main interest rate at 4.25% and the peso extended gains against the dollar.

Moments before the authority gave the announcement at 13:00, the exchange rate amounted to 19.81 pesos and half an hour later reached a slight appreciation at 19.77 units, being the best level of the currency Mexican on Tuesday last week.

The peso accumulated a gain of 0.5% or nine cents compared to Wednesday’s close of 19.86 units, according to the wholesale prices reported by the Bloomberg agency.

At CitiBanamex windows, the dollar is selling at 20.28 pesos, five cents less than yesterday and is also the lowest price last week.

This afternoon, Banxico’s Board of Directors announced that it has decided to leave the main interest rate unchanged at 4.25%, as it did on November 12, after reducing it from August 2019.

Read also: Banxico is not an employee of the “machuchones”: AMLO

The decision was in line with most forecasts, although there were some institutions, such as the Casa de Bolsa Vector, owned by Alfonso Romo, former head of the Bureau of the Presidency, who estimated a reduction on Thursday.

However, before Banxico made its announcement this afternoon, the peso was already gaining ground against the dollar due to substantial advances in the U.S. tax package, amounting to about $ 900 billion and optimistic distribution of the Covid vaccine. 19 in Europe.

On Thursday, the Central Bank of England also announced that it had left the key interest rate unchanged, as well as the value of the asset purchase program.
Despite the uncertainty, members of the central bank assume that the Kingdom

The United Kingdom and the European Union will reach an agreement on their departure from the community, although they ensure that they have more tools to increase the monetary stimulus, if necessary.

ed

.Source