Larry Windrow
The Federal Reserve (Fed) has announced that it will extend its temporary liquidity transfer tax with nine central banks in US dollars until December 31, 2021, and Banco de Mexico (Pansiko) will take advantage of this extension to $ 60 billion. , Both central companies announced this Wednesday.
The deals, first announced on March 19, 2020 to ease tensions in global markets as a result of the impact of COVID-19, affected funding in dollars and sent peso jumping to record above 25 pesos per dollar.
“The agreed transfer mechanism between the Bank of Mexico and the US Federal Reserve is worth up to $ 60 billion, which was in effect until September 30, 2021. This mechanism supports cash flow in US dollars. The use of this mechanism will be subject to the guidelines of the Foreign Exchange Commission, ”Banksico explained in a statement following the central bank’s announcement.
Banksico has other similar options with Bank of Canada, European Central Bank, Bank of England, Bank of Japan and Switzerland.
The Reserve Bank of Australia, the Central Bank of Brazil, the Bank of Korea, the Monetary Authority of Singapore, the Sovereign Bank of Sweden, the National Bank of Denmark and the Bank of India have taken advantage of this expansion. Reserve Bank of Norway and New Zealand. With these last four $ 30 billion.
Laurence Malcom
