Political Risk Latin America Blog @PolRiskLatam

Mexico’s central bank to keep piling up reserves

Posted in News and Articles, Political Risk by politicalrisklatam on April 19, 2011

by Adam Thomson for Financial Times  – Beyond Brics, April 19th, 2011.

Back in January, when the executive board of the International Monetary Fund approved a $73bn flexible credit line for Mexico, it might have been possible to imagine a slowing in the rhythm of foreign-exchange accumulation by Mexico’s central bank.

A posse of IMF staff visiting the country at the time suggested that the idea of the credit line was to relieve the pressure to accumulate reserves so that they could potentially be used for other, more productive means.

That ember was wholly extinguished this week when Agustín Carstens (pictured), Mexico’s central bank governor, said that as long as China kept a strong currency, Mexico was probably going to continue accumulating reserves. (continue reading… )

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