Macroeconomic Forecast Mexico

BMI View: According to weekly data from Mexico's central bank, foreign reserves hit US$103.4bn on July 23, a whopping 40.7% increase from the same period in 2009. As the monetary authorities continue their policy of boosting foreign reserves through their US$ put/MXN call options (which alone have accumulated over US$2.0bn in reserves since March this year) we expect levels to reach US$116.0bn by end-2010, which should help boost investor confidence in the economy in any future credit crisis.

To read the full article, please choose one of the following options: