Macroeconomic Forecast Mexico

BMI View: Despite the recent sell-off of the peso to MXN$13.50/US$, Mexico's foreign reserve levels rose to US$136bn as of August this year. This level represents a 28% y-o-y increase, such that import cover now stands at 4.2 months, down slightly from July's 4.6 months, but still quite healthy. While we see the possibility of further mild depreciation of the peso we do not expect another rapid sell-off, we are revising up our forecast for Mexico's foreign reserves from $135bn to $140bn by year-end.

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