Banco Base’s director of analysis highlighted that two points stand out in the Banco de México statement: The hedging program began to promote an orderly market and, on the other hand, that there is talk of continuing to be committed to a free trade regime floatation.
This would imply that they are no longer the same conditions as when the hedging program began and that they leave the exchange rate without any type of intervention. It is the second time (last minutes and now) that Banco de México talks about the exchange rate, which is one of the most effective channels of transmission of monetary policy in Mexico.
Another of the analysts’ conclusions is that the Foreign Exchange Commission’s decision may also be a consequence of trying to accumulate more international reserves, given the possibility of leaving the IMF’s flexible credit line.
“In our opinion, these measures will put some pressure on the exchange rate; however, we expect this effect to be temporary and short-term as the solid fundamentals of the economy and the resilience of the peso against other currencies of emerging economies will prevail. “said Vector Casa de Bolsa, in an analysis note.
With information from Reuters