CENTRAL BANK OF MEXICO

(BANXICO)

WWW.BANXICO.ORG.MX
 HISTORY

• BANCO DE MÉXICO, WHICH WAS CREATED ON SEPTEMBER 1, 1925,

• BANCO DE MÉXICO UNDERWENT DIFFERENT STAGES BEFORE FINALLY GAINING AUTONOMY THROUGH AN
AMENDMENT TO ARTICLE 28 OF ITS CONSTITUTION AND THE ENACTMENT OF ITS ORGANIC LAW AT THE END
OF 1993. THE FIRST FEATURE OF THIS REFORM WAS THE CLEAR DEFINITION OF THE CENTRAL BANK’S MISSION
(ART. 28):
“THE STATE WILL HAVE A CENTRAL BANK THAT WILL BE AUTONOMOUS IN BOTH FUNCTIONS AND MANAGEMENT.
ITS MAIN PRIORITY WILL BE TO ENSURE THE STABILITY OF THE LOCAL CURRENCY’S PURCHASING POWER, THEREBY
STRENGTHENING THE STATE’S GOAL OF FOSTERING DOMESTIC ECONOMIC DEVELOPMENT. NO AUTHORITY CAN
ORDER THE BANK TO GRANT FINANCING.” IN ADDITION TO THIS GOAL, THE LAW ALSO STATES THAT THE
CENTRAL BANK SHALL PROMOTE THE HEALTHY DEVELOPMENT OF THE FINANCIAL SYSTEM AND THE SOUND
WORKING OF THE PAYMENT SYSTEMS.
 MEXICO

• CURRENCY SIGN SIGN: $; CODE: MXN/ MEX$

• CURRENCY EXCHANGE 1 MEXICAN DOLLAR= 2.60 PHP
• COIN DENOMINATION
• NOTES DENOMINATION
 GOVERNOR:
Alejandro Díaz de León Carrillo
ALEJANDRO DÍAZ DE LEÓN-CARRILLO IS AN ECONOMIST, HE BEGAN HIS CAREER AT BANCO DE MÉXICO IN
1991, WHERE HE HELD DIFFERENT POSITIONS, INCLUDING MACROECONOMIC ANALYSIS DIRECTOR, AND
ECONOMIC STUDIES DIRECTOR.
IN OCTOBER 2007 HE WAS APPOINTED GENERAL DIRECTOR OF THE NATIONAL PENSION FUND OF STATE
WORKERS, THEN HE WAS APPOINTED THE HEAD OF THE DEBT MANAGEMENT OFFICE AT MEXICO’S
MINISTRY OF FINANCE FROM JANUARY 2011 TO NOVEMBER 2015, WHERE HE WAS IN CHARGE OF THE
GOVERNMENT’S INTERNAL AND EXTERNAL FINANCING AND THE OIL HEDGING STRATEGY.
HE WAS LATER APPOINTED GENERAL DIRECTOR OF MEXICO’S EXPORT-IMPORT BANK (BANCOMEXT).
AFTER BEING NOMINATED BY MEXICO’S PRESIDENT AND CONFIRMED BY THE SENATE, IN JANUARY 1ST 2017
HE BECAME PART OF BANCO DE MÉXICO’S GOVERNING BOARD AS DEPUTY GOVERNOR.
HE WAS APPOINTED BY MEXICO’S PRESIDENT TO SERVE AS GOVERNOR OF BANCO DE MÉXICO FROM
DECEMBER 1, 2017 TO DECEMBER 31, 2021.
 7.2 FUNCTION

• REGULATE THE ISSUANCE AND CIRCULATION OF CURRENCY, FOREIGN CURRENCY EXCHANGE,

FINANCIAL INTERMEDIATION AND SERVICES, AS WELL AS PAYMENT SYSTEMS;
• OPERATE AS RESERVE BANK AND LENDER OF LAST RESORT FOR CREDIT INSTITUTIONS;
• PROVIDE TREASURY SERVICES TO THE FEDERAL GOVERNMENT AND ACT AS ITS FINANCIAL AGENT;
• COUNSEL THE FEDERAL GOVERNMENT ON ECONOMIC AND FINANCIAL ISSUES;
• PARTICIPATE IN THE INTERNATIONAL MONETARY FUND AND OTHER INTERNATIONAL FINANCIAL
COOPERATION INSTITUTIONS, AS WELL AS THOSE EMBODYING CENTRAL BANKS; AND
• OPERATE WITH CENTRAL BANKS AND WITH OTHER FOREIGN LEGAL ENTITIES PERFORMING
FUNCTIONS OF AUTHORITY IN FINANCIAL ISSUES.
 7.3 MONETARY TOOLS

• OPEN MARKET OPERATIONS (LIQUIDITY AUCTIONS) MONETARY POLICY IS IMPLEMENTED

THROUGH OPEN MARKET OPERATIONS IN ORDER TO BALANCE ANY LACK OF OR EXCESS
LIQUIDITY IN THE ACCOUNTS THAT BANKS HOLD IN BANCO DE MÉXICO.
• JANUARY 2008 - PRESENT. INTEREST RATE OPERATIONAL TARGET BANCO DE MÉXICO
IMPLEMENTS MONETARY POLICY USING A TARGET FOR THE OVERNIGHT INTEREST RATE
CHARGED IN THE INTERBANK MARKET.
 7.4 ACTIVITIES OF BANXICO

BANXICO IS THE CENTRAL BANK OF THE GOVERNMENT, • MEXICO'S ANNUAL INFLATION RATE FELL TO 3.78
GOVERNED BY THE BANK OF MEXICO LAW. THE PRIMARY PERCENT IN JULY 2019 FROM 3.95 PERCENT IN THE
ACTIVITIES OF BANXICO CONSIST OF:
PREVIOUS MONTH
• DIRECTING MONETARY POLICY AND CONTROLLING
INFLATION; • MEXICO’S CENTRAL BANK TARGETS INFLATION OF 3
• FINANCING THE FEDERAL GOVERNMENT; PERCENT
• MINTING COINS AND ISSUING BILLS; AND
• REGULATING INTERMEDIATION AND FINANCIAL SERVICES.
 7.5 THE CENTRAL BANK & INDUSTRIAL DEVELOPMENT
• IDEA OF A GRAN BANCO DEL IMPERIO MEXICANO. (GRAND BANK OF THE MEXICAN EMPIRE), NEVER
PURSUED, INSTEAD, CREDIT WAS GENERALLY ISSUED BY RELIGIOUS ORDERS OR TRADING GUILDS.
• IN 1827 MEXICO DEFAULTED ON A LOAN FROM BRITISH LENDERS ,INSTEAD THE GOVERNMENT WAS
FORCED TO RELY ON DOMESTIC LENDERS KNOWN AS AGIOTISTAS (SPECULATORS) WHO SPECIALIZED IN
SHORT-TERM, HIGH-INTEREST LOANS.
• THE FIRST BANK ORGANIZED BY THE GOVERNMENT WAS THE BANCO DE AVÍO WHICH WAS FORMED IN
1830
• THE ECONOMY OF MEXICO IS A DEVELOPING MARKET ECONOMY. IT IS THE 15TH LARGEST IN THE
WORLD IN NOMINAL TERMS AND THE 11TH LARGEST BY PURCHASING POWER PARITY, ACCORDING TO
THE INTERNATIONAL MONETARY FUND.
 7.6 THE CBP COORDINATES WITH INTERNATIONAL
INSTITUTIONS
• DECEMBER 31,1945- DATE OF MEMBERSHIP IN WORLD BANK
• FROM THE END OF THE MEXICAN REVOLUTION THAT HAD BEGUN IN 1910, MEXICO DECIDED THAT
SOCIAL PEACE, ECONOMIC GROWTH AND DEVELOPMENT HAD TO BE ACHIEVED BY WAY OF
INSTITUTIONS.
• OUR DEVELOPMENT BANK, THE SET OF NATIONAL CREDIT INSTITUTIONS RESPONSIBLE FOR
FOSTERING GROWTH AND DEVELOPMENT IN MEXICO, WAS BORN IN THE 1920S.
• THE FIRST OF THESE INSTITUTIONS WAS THE NATIONAL BANK OF AGRICULTURAL CREDIT FOUNDED
IN 1926. TOGETHER WITH THE NATIONAL BANK OF EJIDAL CREDIT (1935) AND THE NATIONAL
BANK OF FARMING CREDIT (1965) AND THE NATIONAL BANK OF RURAL CREDIT (1975).
• THE SECOND INSTITUTIONS OF THE MEXICAN IS NATIONAL BANK OF URBAN MORTGAGE AND
PUBLIC WORKS ,FOUNDED IN 1933.
 7.7 CREDIT OPERATION

• BANCO DE MÉXICO REQUIRES THE BANKS TO PUT UP SPECIFIC LEVELS OF COLLATERAL TO

COVER CREDIT OPERATIONS.
• CALLED SISTEMA INTERACTIVO PARA EL DEPÓSITO DE VALORES SIDV. SIAC, WHICH IS
ADMINISTRATED BY THE MEXICAN CENTRAL SECURITIES DEPOSITORY S.D. INDEVAL. SECURITIES
ACCEPTED TO MAKE THESE TRANSACTIONS ARE THE FOLLOWING: 1) GOVERNMENT BONDS;
2) BONDS ISSUES BY THE INSTITUTE FOR THE PROTECTION OF BANK SAVINGS (IPAB); 3)
BANCO DE MÉXICO BONDS (DRMS).
 7.8 SECURITY PLANT COMPLEX

• NEW PRINTING PLANT IN EL SALTO, A CITY IN THE WESTERN STATE OF JALISCO, WHICH
STARTED OPERATING IN NOVEMBER 2018.
• LEGARIA DISTRICT OF MEXICO CITY IN 1969 "THE PLANT IN MEXICO CITY IS CELEBRATING 50
YEARS OF OPERATION AND WAS VERY CLOSE TO ITS PRODUCTION CAPACITY, AND WE HAD
TO GROW, SO THE BANXICO DECIDED TO MANAGE ITS RISK BETTER AND HAVE A
PRODUCTION FACILITY AT ANOTHER LOCATION, THAT'S WHY JALISCO WAS SELECTED FOR THE
SECOND PLANT," THE CENTRAL BANK OFFICIAL SAID.
 7.9 GOLD AND SILVER PLANT MANAGEMENT
• MEXICO WAS ON THE WORLD STAGE AS REGARDS GOLD, AFTER IT PURCHASED 93 TONNES, AND
ROSE IN THE GLOBAL RANKING OF GOLD RESERVES CALCULATED BY THE WORLD GOLD COUNCIL.
• IN FINE GOLD OF 4,034,802 OUNCES, OF WHICH ONLY 194,539 OUNCES ARE LOCATED IN THE
TERRITORY OF THE UNITED MEXICAN STATES
• ASSETS THE COUNTRIES WHERE THESE RESERVES ARE LOCATED ARE “UNITED STATES OF AMERICA,
ENGLAND AND MEXICO.”
• “THE CITY OF LONDON, ENGLAND, WHERE MORE THAN 99% OF THE GOLD WHICH THE BANK OF
MEXICO MAINTAINS OUTSIDE THE COUNTRY IS PRESENTLY UNDER CUSTODY. BESIDES ALL THIS, WHAT
IS WORRISOME IS THAT BANXICO BELIEVES THAT ITS GOLD IS SAFELY STORED BECAUSE IT IS IN THE
HANDS OF THE FAMOUS BANK OF ENGLAND (BOFE).
• 1 OUNCE= MEX$27,915.05