(Adds details on auction in second paragraph.)
Dec. 9 (Bloomberg) -- Mexico’s central bank plans to sell as much as 18.7 billion pesos ($1.4 billion) of one-year bills next week to drain cash from the financial system.
The bank is selling the government bills, known as Cetes, to pull pesos from the economy after its dollar purchases in the foreign exchange market pushed up the money supply. The auction will take place on Dec. 14, the central bank said today on its website.
Policy makers have held auctions previously to control liquidity in the market, according to Rafael Camarena, an economist at Banco Santander SA in Mexico City.
“It’s not something outside of the normal monetary policy of the central bank,” he said in a telephone interview.
A press official at the central bank didn’t immediately respond to a request for comment.
To contact the reporter on this story: Ben Bain in New York at email@example.com
To contact the editors responsible for this story: Jose Enrique Arrioja at firstname.lastname@example.org; David Papadopoulos at email@example.com