Mexico is experiencing volatility in the peso, its national currency, and the tide of inflation in financial markets. The man in charge of the financial system is Alejandro Díaz de León (Mexico City, 1969), Governor of the Bank of Mexico. These are the only ones left for the economist, who will be due in December with the possibility of extending for a longer period. In the last few months, Díaz de León has launched a controversial initiative by them in Congress, which transfers the money laundering risk to the bank and weakens its autonomy.
Prudence is the most important skill of anyone who runs a central bank. One more word or less can tell a panic in the markets. El gobernador la domina. In the meantime, the foreign capital, which is in Mexico’s health and is optimistic about the impetus that the economic estimate of the United States can have in the Mexican economy.
The Mexican peso depreciated 11% against the dollar since February of this year, when the markets began to react to the signs of the covid-19 all over the world. By the time 2021, depreciation has accelerated. If the financial giants and the price on the moon are well intensified, the official will ensure that Mexico is well positioned and hopes that some adjusters in the portfolios of investors are in order.
Pregunta. There are times of a correction in the markets that powder can detonate a balance of emerging economies capital. What is his perspective? Is Mexico prepared to face a financial instability?
Respuesta. On this occasion, it has a tax estimate of 1.9 trillion dollars in EE UU, which is 9% of its gross domestic product (GDP), with a shortfall in output. So what do you have to do with the markets, what is it like to be a public finance guru in inflationary pressures? What we are looking for is the precision in the bags at EE UU which is reflective of the fact that recovery at the global level will be markedly heterogeneous. There are two engines for recovery: one that has to do with the dynamics of the pandemic and the advancement in evacuation processes and other with the estimates of the guest. In both, the United States has an important and good prospect. These are the elements that stand to gain by adjusting this pressure in the interest rates between emerging economies and also, including, portfolio adjustments that lie in depreciation of emerging economies. The law for the Mexican economy has two components. The expansion in EE UU and is better in its prospects of crime has a positive effect on economic activity, in addition to exports, including the growth of consumers in these countries that are sending sales. On the other hand, there is the financial net, which has to be adjusted in the national markets. We were just about to adjust to the mid-range and wide-body pockets in Mexico and also have some volatility in the cambio type. While we have a solid macro brand, as well as established public finances, with low and stable inflation, and with a solid financial system we can avoid an adjustment disordered by this cohort.
P. Mexico has lost 350,000 million pounds of foreign capital since the pandemic. We also know that JP Morgan is closing its private banking operations. Are we looking for a capital flight?
R. This year saw a reduction in the tenure of extraneous values. Creo que obedece a varios factorors. Probably holds an important position of this type of instrument in its chart and before the entrance, the recomposition of fluids, the aversion to risk, etcetera, or a reduction. This is a similar order in the financial market. In other words, we will not hesitate to reduce the interest rates that we will have from May and June, the final years of this year and the principles of this. The same in the cambio type. If there is a portfolio adjustment, there is a significant amount. It means that it adjusts, in some way, has stabilized its flows. JP Morgan’s claims to have a corporate bank transfer giro, which is even more of an element in particular. I believe that part of the reto is that the markets are adjusted with order and believe that all the bags, as well as the type of change reflected, have passed the shock of the past year, the logos have an adjusted order.
P. The bank has at its disposal the banks 750,000 million pounds. Part of the resources available to facilitate access to small and medium-sized businesses and individuals. Sondeverbod, Hacienda dijo que los bancos no estaban utilizing el dinero. Is there a reason why the economy has not improved?
R. The tools that we have in the market to improve our finances and liquidate in the financial markets, we do not necessarily have to use all the facilities to the maximum of our ability. Only those intermediaries who have these facilities will modify their behavior and have the most opportunities to improve their practice. Now, in the ring that you appoint, the one that has the financing of the micro and small companies and also the higher ones, there is one of the ringlinks with less use. I believe that there are many things that are happening in terms of financing. It has been seen that many of the bank’s customers have increased their time. Partly because it does not have the ability to hack the guests that usually hack. Some of these liquidity facilities, which have been the most obvious and very necessary in the first months of the year, have long been and have been less necessary in the midst of which we have increased liquidation by the caption that has increased .
For another loan, due to the risk and the credit operation, all the credit lines are de-escalated, as is the mortgage. These reflect various things. First, that Mexican families, senior citizens, physical individuals and even business people are less confident in assuming an end-of-life education that can lead to ingress. Second, banks can identify that, despite the shock of the pandemic, there are projects and sectors that are more risky and needlessly good credit credits like the previous year. This also makes it even more difficult for you to get involved with the credit and debt management process. You can always have reflections on whether you can react in one way or another to the financing of the micro and small companies that are most affected. I want the balances to be solid, with levels of capitalization raised. The level of charter has come down and it is clear that the bank is in a good position to reactivate the funding in the medium in which the tenants and companies are needed by the mayor and more confidently and that the mayor also has clarity about social security.
P. Together with the Hacienda Secretariat, the Bank announces mediation for migrants who are effectively delayed, resolving an issue that reform of the Bank of Mexico’s claim to abort. Hope that the initiative in the Congress will be discussed?
R. To us, we still have this reflection on how to increase the dollar benefit cycle effectively, in the first instance, to ensure that Mexican migrants can find safe places and good conditions in their domestic journeys. As far as we are concerned, in terms of our diagnostics and this area of opportunity, what we are going to do will be constructive. The actions that are announced will advance to an attention and be respected by what the Power Legislature determines.
P. Until these actions are announced, the bank will advise on the risks that the reform will impose on the financial system. Did you change the perception of the bank?
R. The points that make us feel comfortable and comfortable are here. The bank’s vision, our diagnostic and our vision are very clear. It is on our page in a series of documents. What he has changed is that various seminars have been compromised by the financial authorities in attending to the problem that has been diagnosed and that we will have our pronouncements on what we should not do more. Our diagnostic elements are and are what we express. We are constructive in advancing herrament solutions of this agenda and also we respect the faculties and the reflection that the Legislature has.
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