the government strategies to stabilize the exchange rate.

Flexible Line of
Dollar sales for Auction for the Purchase IPAB Securities Government Direct sales of
Securities Auction Credit
of Savings Protection Auction dollars.
extraordinary
Bonds (BPAS)
auctions.
The Ministry of Finance and Public The Foreign Exchange Commission
The IPAB reduced the amount to Credit reduced the amount of the decides to request the International
Banco de México initiates a series be auctioned of the Savings auctions of long-term instruments, Direct allocations of dollars Monetary Fund (IMF) access to the
of BPAS purchase auctions. These both in pesos and in UDIs in exchange Flexible Credit Line valid for one year.
It has sought to provide Protection Bonds. The IPAB would are made in the exchange This line is available for countries with
auctions were established to for higher auction amounts in short-
compensate the lower amounts term cetes, in such a way that the market. The results of economic fundamentals and a solid
the market with the mainly address the liquidity
problem among investment auctioned with bank financing. amount of net domestic financing. these sales of dollars were policy framework, such as Mexico. Said
necessary liquidity to meet line can be used contingently, and once
companies. These adjustments were aimed at reflected in the weekly
the aforementioned satisfying the demand for short-term approved, access to resources is not
exceptional demand for account statements of the subject to any conditionality. The terms
instruments and limiting the negative
foreign currency. impact on the market due to low Bank of Mexico. to obtain this facility are very favorable,
since the cost for Mexico of having this
long-term demand.
credit line 4 open is very low compared
to other alternatives to increase the
resources available in international
Selling dollars by Exchange Auction (swaps) reserves.

of Interest Rates
daily auctions. additional liquidity
facility

Banco de México initiates Banco de México established an additional

interest rate exchange auctions liquidity facility, which complements the
(swaps), aimed at credit existing operational facility. The purpose of
It is decided to put into the new facility is that those credit
institutions with the purpose of
operation a sales institutions that do not have the eligible
reducing the sensitivity of their guarantees in the operating facility can
mechanism that is portfolios, so that these, in turn, obtain liquidity through the use of a broader
designed to provide are in a better position to list of eligible assets, also, since the objective
is to address temporary liquidity problems. ,
liquidity at times when the provide liquidity to their
the interest rate of the new facility is lower
movement of the exchange customers. than that of the existing operating facility.

rate is significant, which is

determined when a
depreciation of the peso
greater than 2 percent
occurs.
Collateral In case of not having titles or
Term Valuation deposits in US dollars. The Interest rate
institutions will be able to
monetary regulation
one bank business deposits, US dollar
obtain liquidity, guaranteeing it
Eligible securities are with credit portfolios in charge the one that results
day, with automatic deposits. that the
valued according to the accredited institution of federal entities and/or from multiplying the
renewal until the municipalities, whose source
prices and discount maintains in Banco de factor 1.1 by the current
institution México or eligible debt of payment or guarantee are
factors determined by federal participations or target level for the
communicates the securities
Banco de México. contributions. Overnight Interbank
liquidation of the
Interest Rate
financing, or the Bank
determined by the
of Mexico decides to
Debt securities Securities denominated in Governing Board of
cancel it. Securities issued by the
national currency that have
Government
denominated in national Federal Government Securities, EPS and Banco de México.
currency issued by denominated in foreign at least an AA rating and are BREMs.
development banking currency. issued by: parastatal
institutions deposited in entities, municipal and
INDEVAL whose state governments, non-
remaining term is equal financial companies
to or greater than seven residing in Mexico, financial
calendar days. companies and trusts that
securitize mortgage
portfolios.