Mexico cenbank sees little FX impact from reserves plan

Sat Jan 30, 2010 10:12am EST
 
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DAVOS, Switzerland (Reuters) - Mexico's plans to buy more U.S. dollars to increase the country's international reserves are unlikely to have a major impact on the peso, central bank chief Agustin Carstens said on Saturday.

Carstens told reporters on the sidelines of World Economic Forum meetings in Davos he planned to discuss the plan to boost currency reserves with the finance ministry in coming weeks.

Finance Minister Ernesto Cordero told Reuters on Friday it was very likely Mexico would proceed with Carstens' suggestion, buying U.S. dollars on the market.

"We think that the measures should not have a significant impact on the exchange rate," Carstens said, when asked about the likely reaction in the value of the peso.

"We are going to implement (the policy) in a very gradual way, trying to avoid upsets on the markets."

Mexico holds $91.2 billion in reserves, near a record high.

(Reporting by Clara Ferreira Marques; Editing by Hans Peters)