Mexico: Review Under the Flexible Credit Line-Press Release; Staff Report

IMF Staff Country Reports, May 23, 2017

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Canonical URL: Mexico: Review Under the Flexible Credit Line-Press Release; Staff Report

This paper discusses Mexico’s Review under the Flexible Credit Line.
Mexico’s very strong policies and policy frameworks have helped it navigate successfully a complex external environment characterized by the heightened risk of protectionism and financial market volatility.
Although the global environment and financial stability have improved somewhat recently, downside risks affecting Mexico remain elevated amid continued uncertainty about the outcome of the discussions with the United States on trade, as well as a possible renewed surge in capital flow volatility.
Publication date: May 23, 2017

Inflation is above the central bank’s target, reflecting mainly the transitory effects of the liberalization of domestic fuel prices and the pass-through from the currency depreciation.
Keywords related to this theme: anchor inflation expectation, headline inflation, Inflation, Prices, Money, Central banks.

External environment characterized by:
- heightened risk of protectionism
- financial market volatility
Downside risks remain elevated because of:
- continued uncertainty about the outcome of the discussions with the United States on trade
- a possible renewed surge in capital flow volatility

The report highlights: Mexico’s very strong policies and policy frameworks.
Subject areas covered: Banking, Central banks, Credit, External debt, Inflation, International reserves, Money, Prices, Public debt.
Keywords related to policy and IMF engagement: CR, Credit, credit line, FCL arrangement, FCL resource, IMF's Executive Board, ISCR, The Flexible credit line arrangement.