3-cent growthWednesday, March 26, 2014
US dollar reaches 8 pesos
The value of the US dollar in the official exchange market rose three cents yesterday and broke the psychological barrier of eight pesos, closing at 8.015 pesos at banks and exchange houses. Meanwhile, the illegal or “blue” dollar remained stable and closed without changes at 10.82 pesos.
This latest weakening of the peso came with the backing of the Central Bank that did not intervene in the exchange market and saw a US$63 million drop in its international reserves, which closed at US$27.127 billion. The Central Bank also bought US$30 million in the electronic market that were already counted as part of the international reserves.
The last time the dollar reached eight pesos was in January 23 when the peso devalued 55 cents. After that steep devaluation, the peso strengthened 1.83 percent in February, largely as a result of a Central Bank regulation that restricts the amount of foreign currency holdings banks can hold in their coffers to a maximum 30 percent of the institution’s financial liability or its liquid equity, whichever is lower.
The Central Bank’s measure forces banks to sell dollars, leading to a higher availability of foreign currency in the market and the currency to decrease its value.
Herald with DyN