Mexican Intervention: Banco de Mexico Purchase on the USD

2011-05-31: -600 Millions of USD (+ see more) 
Daily, Not Seasonally Adjusted, MEXINTDUSD, Updated: 2011-07-01 11:01 AM CDT
Click and drag in the plot area or select dates: Select date:   1yr | 5yr | 10yr | Max   to

Source: Banco de Mexico: http://www.banxico.org.mx/

+) numbers mean purchases of USD (Sell Peso), (-)numbers mean sales of USD (Buy Peso)

1. Banco de Mexico provides background information on its "Contingent dollar sales mechanism," which constitutes sterilized
interventions (14 total) from February 1997-June 2001:

"In February 1997, the Foreign Exchange Commission, composed of officials from the Ministry of Finance and Banco de México (and responsible for Mexico's foreign exchange policy) announced the establishment of an auction mechanism to sell US dollars. This mechanism was implemented in order to ease the volatility in the foreign exchange market without violating the principles inherent in the prevailing floating exchange rate regime (see the Exchange Commission Statement and Banco de México's Circular 10/97). Implementation of the mechanism was possible due to a significant accumulation of reserves, mainly achieved through the auction of foreign exchange options.

Under this mechanism, Banco de México undertook daily sales of up to USD200 million, with a minimum price for the dollar set at 1.02 times the Mexican peso, as determined by the FIX on the preceding day. If any bids were allocated during the auction, the minimum price for the dollar on the following day was set at 1.02 times the weighted average peso exchange rate determined in the auction. The Contingent Dollar Sales Mechanism was effective until June 2001. It was triggered and implemented only fourteen days during the entire period, for a total amount of USD 1.950 billion sold. Furthermore, almost 60% of total dollar sales took place between August 1998 and January 1999, a period that was characterized by very high volatility in international financial markets."

(http://www.banxico.org.mx/sitioingles/portalesEspecializados/tiposCambio/didactico/subasta_dlls_feb_97_jun_01.html)

2. Banco de Mexico has two added notes about the history of the Contingent dollar sales mechanism:

“1.Daily auction of dollars conducted as stipulated by the Foreign Exchange Commission in the press bulletin of February 19,1997 and circular 10/97 of Banco de México.
2. On September 10,1998 there was also a discretionary intervention for 278 million dollars.”

(http://www.banxico.org.mx/sitioingles/portalesEspecializados/tiposCambio/didactico/HIDollarSales.html)

3. Banco de Mexico has added additional intervention data. For information on new mechanisms and data please visit:

(http://www.banxico.org.mx/sistema-financiero/estadisticas/mercado-cambiario/banco-mexico-s-foreign-exchan.html)

Source: Banco de Mexico

Release: Mexican Foreign Exchange Intervention

Growth Rate Calculations | US recession dates

Restore defaults | Save settings | Apply saved settings











    w   h
Graph Background: Plot Background: Text:
   




Color:



  
(a) Mexican Intervention: Banco de Mexico Purchase on the USD, Millions of USD, Not Seasonally Adjusted (MEXINTDUSD)
Source: Banco de Mexico: http://www.banxico.org.mx/

+) numbers mean purchases of USD (Sell Peso), (-)numbers mean sales of USD (Buy Peso)

1. Banco de Mexico provides background information on its "Contingent dollar sales mechanism," which constitutes sterilized
interventions (14 total) from February 1997-June 2001:

"In February 1997, the Foreign Exchange Commission, composed of officials from the Ministry of Finance and Banco de México (and responsible for Mexico's foreign exchange policy) announced the establishment of an auction mechanism to sell US dollars. This mechanism was implemented in order to ease the volatility in the foreign exchange market without violating the principles inherent in the prevailing floating exchange rate regime (see the Exchange Commission Statement and Banco de México's Circular 10/97). Implementation of the mechanism was possible due to a significant accumulation of reserves, mainly achieved through the auction of foreign exchange options.

Under this mechanism, Banco de México undertook daily sales of up to USD200 million, with a minimum price for the dollar set at 1.02 times the Mexican peso, as determined by the FIX on the preceding day. If any bids were allocated during the auction, the minimum price for the dollar on the following day was set at 1.02 times the weighted average peso exchange rate determined in the auction. The Contingent Dollar Sales Mechanism was effective until June 2001. It was triggered and implemented only fourteen days during the entire period, for a total amount of USD 1.950 billion sold. Furthermore, almost 60% of total dollar sales took place between August 1998 and January 1999, a period that was characterized by very high volatility in international financial markets."

(http://www.banxico.org.mx/sitioingles/portalesEspecializados/tiposCambio/didactico/subasta_dlls_feb_97_jun_01.html)

2. Banco de Mexico has two added notes about the history of the Contingent dollar sales mechanism:

“1.Daily auction of dollars conducted as stipulated by the Foreign Exchange Commission in the press bulletin of February 19,1997 and circular 10/97 of Banco de México.
2. On September 10,1998 there was also a discretionary intervention for 278 million dollars.”

(http://www.banxico.org.mx/sitioingles/portalesEspecializados/tiposCambio/didactico/HIDollarSales.html)

3. Banco de Mexico has added additional intervention data. For information on new mechanisms and data please visit:

(http://www.banxico.org.mx/sistema-financiero/estadisticas/mercado-cambiario/banco-mexico-s-foreign-exchan.html)

Mexican Intervention: Banco de Mexico Purchase on the USD
   

  

Integer Period Range: to copy to all
Create your own data transformation: [+]

Need help? [+]

Use a formula to modify and combine data series into a single line. For example, invert an exchange rate a by using formula 1/a, or calculate the spread between 2 interest rates a and b by using formula a - b.

Use the assigned data series variables above (e.g. a, b, ...) together with operators {+, -, *, /, ^}, braces {(,)}, and constants {e.g. 2, 1.5} to create your own formula {e.g. 1/a, a-b, (a+b)/2, (a/(a+b+c))*100}. The default formula 'a' displays only the first data series added to this line. You may also add data series to this line before entering a formula.



will be applied to formula result
Create segments for min, max, and average values: [+]



Graph Data






Retrieving data.
Graph updated.

Recently Viewed Series


Subscribe to our newsletter for updates on published research, data news, and latest econ information.
Name:   Email:  
Twitter logo Google Plus logo Facebook logo YouTube logo LinkedIn logo

Click to send us feedback