As of October 21.268 billion pesos that foreigners had invested in Mexico in government securities have been withdrawn.
Concerning the pre-pandemic level (Feb 2020), the outflow is 592 billion pesos, or 26.74% of the total.
2021 is shaping up to be the second year in a row with historical capital outflows in government securities. Mexico has never experienced record capital outflows for two consecutive years.
Compared to the maximum historical level reached in February 2019, capital outflows are 651,715 million pesos, or 28.66% of the total amount that foreigners had invested in Mexican government securities.
Capital outflows are expected to continue this year due to:
1) the imminent start of the Fed’s monetary policy normalization
2) global risk aversion due to the pandemic and
3) risk aversion about Mexico due to its economic policy.
Capital outflows put upward pressure on the interest rate of government securities, generating higher financing costs for the government. That also creates volatility in the exchange rate.
The Yucatan Times
more recommended stories
Bolsonaro dismisses vaccination requirement for entry into Brazil
BRASILIA, December 8, 2021 (Reuters) –.
Pfizer, BioNTech vaccine neutralises Omicron with three shots
December 8, 2021 (Reuters) – BioNTech.
President Joe Biden warns Vladimir Putin of consequences in case of a Russian invasion of Ukraine
WASHINGTON — President Biden warned Russian.
Former President Felipe Calderón accuses AMLO of “Fake News”
MEXICO, (December 07, 2021).- The former.
Environmentalists call to report animal abuse in Ciudad del Carmen, Campeche
They have registered up to six.
Traditional ‘Burning of the Old Man’ will be prohibited this New Year’s Eve in Progreso
Traditional end-of-year activity will be prohibited.
Yucatecan tour operators reinforce security measures to receive cruise passengers
Expectations for 2022 are positive, but.
Geminid meteor shower will coincide with comet Leonard in Yucatan
Starting on December 12th, the sky.
The Electric Reform has nothing to do with ideology, says Rocío Nahle
Before senators, the Energy Secretary, Rocío.
More than 100 Haitian migrants arrive in Campeche
San Francisco de Campeche, (December 07,.