The International Monetary Fund on Friday boosted its flexible credit line with Mexico to $88 billion in a bid to support Latin America's No. 2 economy, whose currency has been battered by global volatility.
The fund said it canceled a previous flexible credit line, which was for $67 billion and approved on November 26, 2014. The new credit line will last for two years, the fund said.
Mexico's macroeconomic policies "remain very strong," but there are risks given global market volatility, David Lipton, IMF first deputy managing director and acting chair, said in a statement.
Mexico's peso was little changed following the announcement.
Mexico has been one of the most orthodox adherents among emerging markets to IMF doctrine — such as a freely floating currency — and only Colombia and Poland have received similar credit lines.
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