(Wraps currency auctions, growth, peso exchange rate, adds quote)
MEXICO CITY, Jan 8 (Reuters) - Mexico's exchange rate may have been affected by a market over-reaction to China, and once things calm down, it should reflect Mexico's economic fundamentals and appreciate, Bank of Mexico Governor Agustin Carstens said on Friday.
Mexico's peso currency has hit a series of record lows against the dollar in recent days, with fears over Chinese markets and low oil prices battering the currency.
"As time passes and the dust settles," Carstens said at an event in Mexico City, "the nominal exchange rate will reflect the fundamentals of the Mexican economy, which from my point of view are strong, and certainly after that we'll see a more appreciated exchange rate in the future."
On Friday, when the peso slumped to a record low of 17.96 pesos per dollar, Mexico sold $400 million in two tranches as part of an auction program to shore up the currency.
Also, Finance Minister Luis Videgaray said the Mexican economy likely grew around 2.5 percent in 2015. (Reporting by Michael O'Boyle, Noe Torres and Mexico City Newsroom; Editing by Dan Grebler)