Home Business-newBusiness Bank of Mexico chief’s departure: What it means

Bank of Mexico chief’s departure: What it means

by Yucatan Times
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The markets in Mexico have focused their attention this week on the imminent nomination of the next governor of the Bank of Mexico before the departure of Agustín Carstens on November 30…

MEXICO – Economists from Santander, Citibanamex, Scotiabank, Multiva and Banorte Ixe consider that there may be an increase in the benchmark interest rate. In their weekly reports they specify that the Bank of Mexico could raise the benchmark rate to 7.25% in December.

Agustín Carstens current Central Mexico’s Bank Governor will leave his post on November 30th. (Photo: La Revista Peninsular)

A specialist from Banorte Ixe warned that “a delay in the appointment of the new governor of Banxico could have negative consequences on the perception of autonomy and credibility that our Central Institute has gained over the years. In addition, we believe that it could affect the levels of the exchange rate, as well as the expected levels of interest rates embedded in future Interbank Interest Rate of Equilibrium (TIIE) instruments.”

On Friday December 1st, the Bank of Mexico will publish the indicators of family remittances corresponding to the tenth month of the year, which provides a flow of one thousand 406.7 million dollars, which would imply an increase of 8.4 percent over the same month of the previous year.

Bank of Mexico building in downtown Mexico City January 23, 2015. REUTERS/Edgard Garrido

The head of the Central Bank rules the whole monetary policy in the country, and it has been thanks to the good management by Agustín Carstens that the exchange and the interest rates has remained stable despite all the international troubles that the country has passed through in the last years.

The designation should be done fast  considering that the entire value of the national currency depends on this institution’s leader, because he will be the one who will decide what to do in order to avoid any economic crisis and maintain the monetary influx as well as the international currencies reserve of the nation.

Source: www.larevista.com.mx

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