MEXICO CITY, Sept 22 (Reuters) - Mexico will continue to accumulate foreign currency reserves to protect against volatility in global markets, Finance Minister Ernesto Cordero said on Wednesday.
The central bank restarted a mechanism in February to accumulate the largest possible war chest, but as a percentage of GDP Mexico’s reserves are still below the levels seen in other Latin American countries.
The bank has been buying U.S. dollars since March and the program has also poured pesos into the market.
“We still think it is sensible, even wise, to continue to accumulate international reserves to be comparable with the level of cushioning other countries have,” Cordero said during a session with senators.
Mexico had 106,989 million dollars in reserves, or 10 percent of GDP, as of Sept. 15, Cordero said. That level is relatively low compared to Peru, where reserves equal 25 percent of GDP, Brazil with 16 percent and Chile with 13 percent of GDP, he said.
Reserve holdings in China and Russia are significantly higher, he noted. (Reporting by Luis Rojas; Editing by Richard Chang)