The Mexican government says it is dropping daily dollar auctions, raising interest rates and cutting government spending by 0.7 percent of GDP to counter the falling peso and oil revenues.
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The Treasury Department says it will cut federal spending by the equivalent of about $7.2 billion dollars, and the Bank of Mexico said it would raise interbank interest rates from 3.25 percent to 3.75 percent.
The peso’s interbank rate rose to 18.29 to $1 on Wednesday, after falling as low as 19.40 to $1 earlier this month.
The central bank had been auctioning off as much as $400 million per day to support the peso.
Prices for Mexican oil exports averaged $24.56 per barrel Wednesday. The government depends on oil revenue for about a third of its budget.