MEXICO CITY (Reuters) – The governor of Mexico’s central bank, Agustin Carstens, said Friday that the new bond purchase program announced by the European Central Bank (ECB) will strengthen the Mexican peso weakened by falling oil prices.
“When quantitative easing was in full swing we were getting a lot of cash flow, “Carstens told Bloomberg Television under the Economic Forum in Davos, Switzerland.
” We’ll probably have a similar though more now moderated far the ECB effect, “he said.
The ECB announced Thursday a program of bond purchases to inject up to one billion euros in the ailing eurozone economy.
“In some way helps because it keeps the relatively heavy weight, and that obviously helps to inflation “he said.
The Mexican currency has fallen more than 11 percent against the US dollar since early September dragged by falling oil prices globally, while inflation in Mexico in the first half of January stood down from the ceiling of the central bank.
(Editor Mexico, edited by Manuel Farias)
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