The U.S. government has forced Mexico into negotiations over what Washington considers unfair practices that are effectively excluding U.S. and other foreign companies from the Mexican energy sector in violation of the free trade agreement they signed with Canada, the Associated Press reported. Mexico says it has received a similar notice from Canada related to its electricity law. The U.S.
Mexico
Read more
A commercial court recognized the dissolution of Mexico's Credito Real and ordered its judicial liquidation, the troubled payroll lender said in a filing yesterday, Reuters reported. Credito Real, reeling from a bond default, said in June it was aiming for an orderly restructuring of its debt.
Unregulated lenders in Mexico that specialize in loans to low-income people grew at a breakneck pace over the past decade, until accounting irregularities at three Deloitte-audited firms threw the sector’s credibility into question, the Wall Street Journal reported. The three lenders—Crédito Real SAB de CV, AlphaCredit Capital SA de CV and Grupo Finmart—have discredited some financial statements as unreliable. All retained the same auditor for years: Deloitte Mexico, the Mexico City-based unit of Deloitte Touche Tohmatsu Ltd.
Read more
Mexico's annual inflation accelerated in June to a level not seen since early 2001, official data showed on Thursday, suggesting the central bank will have little choice but continue its monetary tightening to tame spiraling consumer prices, Reuters reported. Mexican consumer prices rose 7.99% in the year through June, the national statistics agency said. That was also far above the central bank's target of 3%, plus or minus a percentage point, and marked the highest level since January 2001, when Mexico's 12-month inflation stood at 8.11%.
Read more
Remittances sent to Mexico, a major boon for Latin America's second-largest economy and especially for low-income families, reached an all-time high of $5.17 billion in May, central bank data showed on Friday, Reuters reported. It was the first time monthly remittances surged past the $5.0 billion mark and compares with $4.72 billion in April and $4.53 billion in May 2021.
Read more
Mexico’s central bank accelerated the pace of its interest rate increases Thursday, delivering the country’s biggest ever hike and signaling willingness to keep boosting rates at the same pace if needed, Bloomberg News reported. The board of Banxico, as the bank is known, unanimously voted to raise its key rate by 75 basis points to 7.75%, as expected by all 27 economists in a Bloomberg survey.
Read more
Mexican President Andres Manuel Lopez Obrador said on Friday that during a planned visit to Washington next month he would propose to his U.S. counterpart Joe Biden that they craft a joint anti-inflationary plan to tackle surging prices, Reuters reported. Mexico's leftist president did not set out details of what such a plan could entail, but he pointed to three measures his administration had taken to keep down the price of household staples like foodstuffs and fuels.
Read more
Mexico's troubled payroll lender Credito Real said in filing to the Mexican stock exchange late Wednesday that it was aware of claims of a filing of an involuntary chapter 11 bankruptcy petition, which it would fight once the petition was served, Reuters reported. "The company believes the Involuntary Petition is improper and was filed as a litigation tactic in the U.S. by certain alleged minority creditors to gain leverage in negotiations with the company," Credito Real said.
Read more.
Read more
Mexico's financial system is resilient and solid despite international economic and geopolitical volatility, the central bank chief said on Wednesday during the introduction of the monetary authority's financial stability report, Reuters reported. "The Mexican financial system maintains a solid and resilient position," the central bank said in its biannual stability report, stressing that the country meets minimum capitalization levels. Earlier on Wednesday, the U.S.
Read more
Mexican President Andres Manuel Lopez Obrador criticized the use of monetary policy to curb inflation, saying high interest rates stop economic growth, one week before the nation’s central bank may deliver its biggest hike yet, Bloomberg News reported. AMLO, as the president is known, likened repeatedly raising rates to turning off the engine of a car when it overheats and said he would rather focus on increasing production to avoid supply shortages.
Read more