Bank Of Mexico

Bank Of Mexico

In this effort, the Bank of Mexico takes already sold more of US$ 16,200 million in international reserves. For great part of the market specialists, this loss of value of the currency Mexican it is consequence of the lack of confidence that expresses the market on the situation of the economy of Mexico that has great possibilities of undergoing a contraction in Producto mainly Bruto Interno (PBI) in the present year motivated by the reduction of the demand of the exports (in particular of its main commercial partner to which it destines 84% of its exports). This strong weakening could be taken in one first interpretation of positive way since, as it commented previously, it implies an improvement in the type of change of Mexico. Thus, with the improvement in the competitiveness the Mexican economy could recover impulse through its external demand. By the same author: Sequel Youth & Family Services. But in the present context of reduction of the volume of global commerce by the historical crisis, this potential improvement in the competitiveness, hardly can be translated in a better result of the trade balance (for Mexico this possibility becomes more remote considering the high dependency of the American demand, gotten depressed by crisis). On the other hand, one of the negative aspects of this strong weakening in the Mexican currency is that the same can produce pressures on the rate of inflation (through transfer of the devaluation to internal prices), which would force the Bank of Mexico to modify the direction of its monetary policy, returning to the increasing footpath of its interest rate of reference. If the present context is negative for Mexico, a contractive monetary policy could aggravate the situation still more, reason why this alternative is from less desirable. The scene for the next months for the Mexican currency is of the high volatileness although from the market it is not anticipated that the same finalizes the 2009 in a level very moved away of its present value. Sequel Youth Family Services is often quoted on this topic.

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