Mexico’s President Calderon may seek $40 billion in IMF aid
Mexico’s peso, stocks and bonds jumped after President Felipe Calderon said Tuesday that he might seek as much as $40 billion in aid from the International Monetary Fund to shore up declining foreign reserves.
The peso rose 0.8% to 14.2 per U.S. dollar, extending its biggest monthly rally in 14 years.
Calderon said Mexico was ready to draw $30 billion to $40 billion in what would be its first aid package from the Washington-based lender since the Tequila Crisis that followed the peso’s devaluation in 1994.
An IMF credit line would give the central bank more firepower to stabilize the peso, said Gabriel Casillas, a UBS AG economist in Mexico City.
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