The U.S. and Mexico have updated an exchange stabilization agreement from 24 years ago, increasing the potential size of the U.S. Treasury's "swap line" with Mexico to $9 billion from $3 billion.
The agreement reflects "the tremendous growth in trade and financial flows that have occurred between our economies over the last 24 years," according to a joint statement by U.S. Treasury Secretary Steven Mnuchin and Mexican Finance Minister Jose Antonio Gonzalez Anaya.
The new facility complements a separate $3 billion swap line Mexico has with the U.S. Federal Reserve, which Mexico used during a currency crisis in 1995.
The two countries have also agreed to enhance regulatory cooperation on financial sector developments and to continue joint efforts to combat money laundering and corruption, according to the statement.
The tripling of the swap line follows a recent trade agreement between the U.S., Mexico and Canada to replace the NAFTA trade pact.