# Experts warn Mexico’s peso defence could be costly - Central Banking

> Mexico's central bank is weighing interest rate hikes and hedging programs to defend the peso, which hit a record low of 20.61 per dollar on June 14, down 14.4% since April. Experts warn the hedging could cause large losses and rate hikes could slow growth.

- Date: 2018-06-18 · published 2018-06-18T12:00:00.000Z
- Category: macro · region Mexico · magnitude low
- Page: https://feedsoft.ai/events/64750-experts-warn-mexico-s-peso-defence-could-be-costly-central-banking
- Commodities: [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md)

## Why it matters

A weak peso and costly defense measures weigh on Mexican feed importers' purchasing power and margins. Slower growth could reduce demand for feed in Mexico.

## Read by commodity

- USDMXN: bullish ▲

## Sources

- centralbanking.com: https://www.centralbanking.com/central-banks/financial-stability/3579591/experts-warn-mexicos-peso-defence-could-be-costly

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