Mexico moved to inject cash into its financial markets Thursday, saying it will buy back $3 billion in government bonds.
Mexican finance officials made the announcement Thursday, saying the country will buy back the 10 to 30-year fixed rate bonds in order to strengthen liquidity in the cash-squeezed markets.
Word of the plan caused Mexico's peso to strengthen, trading at 12.7 to the dollar.
Separately, Mexico is being helped by a "swap" accord with the U.S. central bank. The Federal Reserve said Wednesday it will provide $30 billion in credit to the central banks of Mexico, Brazil, South Korea and Singapore to help those countries deal with the global credit crisis.
Brazil's Ibovespa stock index rallied Thursday on the Fed's announcement.
On Wednesday, the International Monetary Fund (IMF) said it was creating a new loan program to quickly get money to emerging markets with sound economic policies that face cash shortages due to the financial crisis.
The Fed responded by saying it was supportive of the IMF's role in helping countries address and resolve their ongoing economic and financial difficulties.
Some information for this report was provided by AP, Bloomberg and Reuters.
