FxWirePro: Daily Commodity Tracker - 21st March, 2022 
The Mexican peso reacted strongly to the exchange commission announcement that increases support measures for this currency. The exchange commission which is comprised of members of the MoF and also the Central bank decided to increase the daily amounts of USD sales at prevailing market conditions to USD 200mn from a previous USD 52mn for the July 31 to September 30 period and then reassess market conditions with respect to this program.
In addition, the rule based mechanism to auction USD 200mn will have a 1% trigger (MXN depreciating from previous day fix levels) instead of the previous 1.5% depreciation threshold, says Commerzbank. The same time period applies for this measure as well.
According to Commerzbank, "We see both measures as a way to provide markets with additional liquidity and prevent excessive volatility that goes beyond Mexico's fundamentals and market expectations of US monetary conditions normalisation."
