Скачать или смотреть MEXICO: STOCK EXCHANGE HIT HARD BY FALL IN WORLD MARKETS

(10 Sep 1998) Spanish/Nat

Mexico's peso closed sharply weaker - its sixth consecutive record low - against the U-S dollar on Thursday, even as the Bank of Mexico tightened monetary policy and took the unusual step of selling dollars.

The stock market also closed sharply lower.

On 48-hour spot markets in Mexico City, banking leader Banamex quoted the peso closing at a mid rate of 10.6 to the dollar, weaker than its open of 10.52 and from its Wednesday close of 10.32.

Mexico's stock exchange was hit hard by the falls in markets around the world on Thursday.

For its sixth consecutive record low, the peso closed sharply weaker.

On 48-hour spot markets in Mexico City, banking leader Banamex quoted the peso closing at a mid rate of 10.6 to the dollar, weaker than its open of 10.52 and from its Wednesday close of 10.32.

The central bank said it intervened for the first time since December 1995 by selling U-S 278 (m) million dollars directly into the money market to bolster the currency, in addition to U-S 200 (m) million dollars auctioned earlier to banks.

For some Mexicans, it's a situation they're getting used to.

SOUNDBITE: (Spanish)
"Unfortunately, it's a situation that happens almost every year. It's like a cycle in which the situation repeats itself every three to four years. Due most of the time to bad financial management from the government."
SUPER CAPTION: Voxpop

According to traders, none of the measures had a lasting impact.

But for the average Mexican, the impact means a lack of confidence in the government's economic policies.

SOUNDBITE: (Spanish)
"I've always thought that it's a psychological thing. In reality I don't understand why the stock markets plummet, but it's something that makes people lose trust."
SUPER CAPTION: Voxpop

Traders said that the turmoil in financial markets from Russia to Brazil to the United States overpowered the central bank's moves.

The peso weakened to about 10.7 to the dollar at one point during the session.

Stocks also suffered their worst drop since the Asian crisis struck in October, nose diving 9.8 percent lower in a sell-off that struck markets across Latin America.

The key I-P-C index closed down 9.8 percent or 311.16 points at 2,856.10 points.

It was the largest percentage drop for the I-P-C since 27 October 1997, when it plunged 13.3 percent as the Asian financial crisis spooked emerging market investors.

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