Economics
U.S. to Triple Emergency Swap Line for Mexico to $9 Billion
- Swap line can be used as loan if Mexico faces financial stress
- Mexico has had $3 billion swap line with Treasury since 1994
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The U.S. Treasury plans to triple the size of an emergency swap line for Mexico to $9 billion, giving the Latin American nation more of a financial cushion as emerging markets come under pressure from rising U.S. interest rates. The peso pared its losses.
Treasury Secretary Steven Mnuchin and Mexican Finance Minister Jose Antonio Gonzalez Anaya on Wednesday will sign a memorandum of understanding to update the Exchange Stabilization Agreement between the two countries.