# Mexico Changes Strategy to Protect Peso

> Mexico's central bank governor said the bank changed its approach to defending the peso after Trump's tweets in January wiped out a $2 billion intervention. The bank moved from direct dollar sales to a hedging program of up to $20 billion. A hedge auction was fully subscribed.

- Date: 2017-04-06 · published 2017-04-06T12:00:00.000Z
- Category: macro · region Mexico · magnitude low
- Page: https://feedsoft.ai/events/71739-mexico-changes-strategy-to-protect-peso
- Commodities: [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md)

## Why it matters

A central bank that defends the peso with hedges rather than reserves supports Mexico's import purchasing power for feed. The change reduces the risk of a sudden currency shock to feed costs.

## Read by commodity

- USDMXN: bearish ▼

## Sources

- voanews.com: https://www.voanews.com/a/mexico-peso-strategy/3798548.html

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