# Mexico winds down currency hedging program, peso weakens

> Bank of Mexico said it will gradually reduce its currency hedging program given the peso's recent strength, prompting an initial 2% drop in the peso before partial recovery. The peso has gained over 13% this year.

- Date: 2023-08-31 · published 2023-08-31T12:00:00.000Z
- Category: macro · region Mexico · magnitude low
- Page: https://feedsoft.ai/events/34793-mexico-winds-down-currency-hedging-program-peso-weakens
- Commodities: [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md)

## Why it matters

A weaker peso lowers the cost of Mexican imports priced in dollars, which can modestly affect Mexican demand for US feed grains and meal, though analysts see the move as temporary.

## Read by commodity

- USDMXN: bullish ▲

## Sources

- reuters.com: https://www.reuters.com/article/markets/mexico-winds-down-currency-hedging-program-peso-weakens-idUSL1N3AC1WH/

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