Home Business-newBusiness Under AMLO’s government, Mexico registers a historical capital outflow

Under AMLO’s government, Mexico registers a historical capital outflow

by Yucatan Times
0 comment

As of October 21.268 billion pesos that foreigners had invested in Mexico in government securities have been withdrawn.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

You may also like

Leave a Comment

Our Company

Lorem ipsum dolor sit amet, consect etur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis.


Laest News

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?
Update Required Flash plugin