Mexico slashes spending to reinforce the peso

The Mexican government announced plans Wednesday to cut budget spending and the Bank of Mexico unexpectedly raised interest rates in response to global volatility and falling oil prices that have sent the peso to all-time lows against the U.S. dollar.

Finance Minister Luis Videgaray said that as a preventive measure, the government will reduce spending this year by $7.2 billion, or 0.7 percent of gross domestic product.



Source: Wall Street Journal