Mexico, U.S. extend $30 billion swap to ease lending

11:16 a.m. February 3, 2009

MEXICO CITY — Mexico's central bank and the U.S. Federal Reserve have agreed to extend the terms of a currency swap through October to boost cash supply at Mexican banks.

The agreement gives Mexico's central bank access to $30 billion, in case it needs additional access to dollars as the global financial crisis tightens lending.

The Bank of Mexico on Tuesday said the swap had been extended from April 30 to Oct. 30.

The Bank of Mexico has auctioned off more than $15 billion in foreign currency reserves to boost its sagging currency.

The peso was trading at a record low of 14.59 to the dollar Tuesday.
Mexico has not yet called in any of the $30 billion.

The U.S. has extended the terms of similar currency swaps to 12 other countries.

http://www3.signonsandiego.com/stories/ ... ndex=47275