# Mexico to offer up to USD$20 billion in forex hedges to aid battered peso | El Universal

> Mexico's finance policymakers said the central bank will offer up to $20 billion in currency hedges, a major change in FX policy. The peso surged 1.8 percent, briefly breaking 20 per dollar for the first time since Trump's election.

- Date: 2017-02-22 · published 2017-02-22T12:00:00.000Z
- Category: macro · region Mexico · magnitude medium
- Page: https://feedsoft.ai/events/72717-mexico-to-offer-up-to-usd-20-billion-in-forex-hedges-to-aid-battered-peso-el
- Commodities: [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md), [Corn](https://feedsoft.ai/c/CORN.md)

## Why it matters

A firmer peso lowers the local cost of US feed grain and meal imports, supporting Mexican demand, though the effect on grain prices is indirect.

## Read by commodity

- CORN: neutral
- USDMXN: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| CORN | 2017-02-21 | [Mexico announces forex hedge program, peso jumps 2%](https://feedsoft.ai/events/72713-mexico-announces-forex-hedge-program-peso-jumps-2.md) | -1.0% | -1.0% |
| CORN | 2016-12-03 | [Mexico peso edges up, but Trump trade risks loom](https://feedsoft.ai/events/73673-mexico-peso-edges-up-but-trump-trade-risks-loom.md) | +4.1% | +2.4% |
| CORN | 2017-01-30 | [Mexico peso firms to year high on U.S. trade talk optimism](https://feedsoft.ai/events/73196-mexico-peso-firms-to-year-high-on-u-s-trade-talk-optimism.md) | +2.0% | +1.2% |
| CORN | 2017-02-22 | [‘Desperate measures’: analysts react to Mexico’s $20bn peso plan](https://feedsoft.ai/events/72714-desperate-measures-analysts-react-to-mexico-s-20bn-peso-plan.md) | -0.1% | -1.6% |
| CORN | 2017-02-28 | [Trump Was Going to Kill Mexico’s Peso. It’s Doing Just Fine - Bloomberg](https://feedsoft.ai/events/72712-trump-was-going-to-kill-mexico-s-peso-it-s-doing-just-fine-bloomberg.md) | +0.9% | -1.1% |

## Sources

- eluniversal.com.mx: https://www.eluniversal.com.mx/articulo/english/2017/02/22/mexico-offer-usd20-billion-forex-hedges-aid-battered-peso/

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