Mexican Government Buys $7 Billion of Reserves from Central Bank

Posted on 09/14/2021

The Bank of Mexico (Banxico) disclosed that the Mexican government acquired international reserves worth US$ 7 billion last week. This purchases reduced reserves to US$ 198.5 billion. In August 2021, Mexico received US$ 12 billion from the International Monetary Fund as part of the recently issued Special Drawing Rights. Mexico President Andrés Manuel López Obrador had repeatedly said that he wanted to use the additional funds to pay off part of the country’s debt. Banxico clarified that the Mexican government can only use those funds if it buys them from the monetary authority.

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