MEXICO CITY -Mexico's Central Bank will auction dollars to prop up the sagging peso, something the government also did in 2008 amid turmoil in the global economy.
The Central Bank will offer up to $400 million in a daily auction if the peso falls more than 2 percent in value over the preceding day. Mexico's international currency reserves stood at $139.6 billion on Tuesday.
The peso dropped to 14.26 against the U.S. dollar Monday, but rebounded to less than 14 to the dollar by midday Tuesday.
Mexico's currency has fallen since July in response to the debt crisis in Europe.
A joint statement from the Treasury Department and the Central Bank says the auctions in late 2008 were successful in boosting the falling peso.
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