Mexico will make sweeping budget cuts of $US1.6 billion ($A2.1 billion) in the wake of Britain's decision to leave the European Union, the finance minister says.
The second largest economy in Latin America was preparing for its second budget cut of 2016, set at 31.7 billion pesos ($A2.3 billion), finance minister Luis Videgaray said on Friday.
The minister said the savings will strengthen Mexico's macro-economic position in the aftermath of the Brexit.
Mexico isn't expecting severe direct consequences from the British vote.
Mexico's trade with Great Britain accounts for only 0.7 per cent of its overall trade.
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However, the country wants to prepare for any instability in the financial markets, Videgaray said.
Mexico continues to struggle with major exchange rate fluctuations.
The government is prepared for speculators to go after the Mexican peso, Videgaray says.
Mexico holds $US177 billion in reserve that can be used to prop up the peso if necessary.
