# Mexican Peso Slides After Banco de México Says It’ll Wind Down Currency Hedging

> Banco de México said it will gradually reduce its FX hedge program, which holds about $7.5 billion in outstanding positions, starting in September. The peso fell after the announcement, which was read as a signal that the central bank may tolerate less peso strength.

- Date: 2023-09-01 · published 2023-09-01T12:00:00.000Z
- Category: macro · region Mexico · magnitude medium
- Page: https://feedsoft.ai/events/34341-mexican-peso-slides-after-banco-de-mexico-says-it-ll-wind-down-currency-hedging
- Commodities: [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md)

## Why it matters

A weaker peso raises the USD cost of Mexican feed imports and can make Mexican buyers less price-sensitive to US corn and soymeal, so the move matters for feed import costs.

## Read by commodity

- USDMXN: bullish ▲

## Sources

- bloomberglinea.com: https://www.bloomberglinea.com/english/mexican-peso-slides-after-banco-de-mexico-says-itll-wind-down-currency-hedging/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.