Mexico City: Mexico's Finance Minister Luis Videgaray announced on Friday a $1.68 billion budget cut to deal with the consequences of Britain's vote to leave the European Union.
"The British people have surprised the world," Videgaray told a news conference.
The budget cut, which will not involve state oil firm Pemex, will ensure that Mexico meets its fiscal deficit goal, Videgaray said.
The Mexican currency surged to around 19.50 pesos to the dollar early Friday after Britain voted to ditch the EU, but it later settled at around 18.80-18.90 pesos, he said.
But authorities will only take actions to defend the peso if it is hit by a "specific speculative phenomenon" that threatens inflation goals, Videgaray said.
Mexico's stock market, meanwhile, opened down 2.52 percent.
AFP
