UPDATE 1-Mexico central bank reduces daily reserves sales

(Adds details, research quote)

MEXICO CITY, April 17 (Reuters) - Mexico's central bank will cut the amount of foreign reserves it sells per day in the foreign exchange market to $21 million from May 2 to July 31, the bank said on Tuesday.

The central bank has sold $26 million a day in the three months to April 30.

The bank said the country's international reserves stood at $69.187 billion as of April 13.

The market had been expecting a drop in the amount of reserves the bank sells daily.

"After the purchase of more than US$12 billion by the federal government to prepay external debt last August, we think the days of dollar sales above US$40 million per day are over," UBS said in a statement prior to the release.