Mexico market volatility could ease if Trump situation ‘resolves itself’: cbank governor

10/12/16 Reuters

carstensMexico’s central bank governor Agustin Carstens said on Wednesday that volatility in local markets could ease if the situation involving U.S. Republican Presidential hopeful Donald Trump “resolves itself.”

Noting that Trump has made “very specific” comments about Mexico, Carstens told local radio that “everything points to this resolving itself and let’s hope that is the case. And from then on, I expect that we could see much less volatility in our markets.”

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Mexico’s Carstens says will consider using IMF credit line -paper

10/10/16 Reuters

carstensMexico will consider using its $90 billion flexible line of credit with the International Monetary Fund in the event of an external shock, the head of the country’s central bank said in an interview published on Monday.

“It doesn’t mean we will immediately use it, but we’ll have to evaluate the circumstances and be prudent,” said central bank Governor Agustin Carstens in an interview with El Economista newspaper.

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Mexico’s Carstens warns on protectionism

08/29/16 Financial Times 

Agustin_CarstensProtectionist trends in leading economies are threatening the world’s already laggardly growth potential, the head of Mexico’s central bank has warned.

Agustín Carstens, the governor of the Bank of Mexico, said that anti-globalisation demands were not confined to the US, where Donald Trump has been vowing to rip up trade deals, but were visible across a range of G20 countries.

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Transcript: WSJ’s Interview with Bank of Mexico Governor Agustín Carstens

07/11/16 The Wall Street Journal

Agustin Carstens

Bank of Mexico Governor Agustín Carstens spoke with Juan Montes, David Luhnow and Anthony Harrup of The Wall Street Journal at the central bank’s headquarters in Mexico City on Friday, July 8, 2016.

He commented on the world economy in the wake of Brexit and the reasons why the Bank of Mexico opted for a bigger-than-expected half-percentage-point interest-rate increase on June 30.

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Bank of Mexico Sticks to 2016 Growth Outlook, Trims 2017 Forecast

5/26/16 Wall Street Journal 


MEXICO CITY—The Bank of Mexico said Wednesday that it still expects the country’s economy to grow between 2% and 3% this year, but lowered its growth forecast slightly for 2017.

In its quarterly inflation report, the central bank forecast gross domestic product would expand between 2.3% and 3.3% in 2017, less than its previous estimate of 2.5% to 3.5%. The economy grew 2.5% in 2015 and expanded 2.6% in the first quarter of this year.

The main reason for the 2017 change is the lower outlook for U.S. industrial production, which is a driver of Mexican output, Bank of Mexico Gov. Agustín Carstens said at a news conference.

Growth could be better if private consumption in Mexico continues to gain strength, or the economy sees favorable effects from overhauls in areas such as energy, telecommunications and the financial sector. On the other hand, a slowdown in the global economy, and particularly the U.S., and more complex international financial conditions restricting investment could lead to lower growth than expected, the bank said.

The central bank still expects the inflation rate, currently at 2.5%, to remain below its 3% target in coming months, possibly rising temporarily above that level toward the end of the year.

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Mexico GDP Beats Forecasts on Consumer Spending; Peso Rises

4/29/16 Bloomberg Business

pesoMexico’s economy expanded more than analysts forecast for the third time in four quarters as strength in domestic consumption offset weak exports and a drop in oil output. The peso extended its gain, rallying to the strongest level in more than four months.

Gross domestic product rose 2.7 percent in the first quarter from a year earlier, according to preliminary figures released by the national statistics institute Friday. That compared with the 2.4 percent median forecast of 19 economists surveyed by Bloomberg. From the previous quarter, GDP expanded 0.8 percent. The institute will release final GDP figures May 20.

Mexican consumers are spending more as inflation holds near a record low and remittances rise amid weakness in the peso. The country has been a bright spot for growth compared with some Latin American economies such as Brazil, and in an interview last week, central bank Governor Agustin Carstens said it may get even better as factors that have held back the expansion, such as weak exports, begin supporting growth.

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Mexico cenbank slams Trump remittance plan as rights violation

4/13/16 Reuters

380px-Agustin_CarstensU.S. presidential candidate Donald Trump’s proposal to force Mexico to pay for a border wall by threatening to block remittances from illegal immigrants would be a major violation of Mexicans’ rights, Mexico’s central bank governor said on Tuesday.

The Republican candidate said last week that if elected in November, he would use a U.S. anti-terrorism law to cut off such money transfers unless Mexico made a one-time payment of $5 billion to $10 billion for the wall.

Mexican Central Bank Governor Agustin Carstens, speaking in Mexico’s Congress, dismissed the idea.

“The remittances are the property of the people that make them and they have every right to be able to carry out international transfers,” Carstens told reporters. “So it would be a serious violation of the property rights of our fellow citizens abroad and this measure would be completely unjust.”

The U.S. remittances are worth roughly $25 billion per year, or close to 2 percent of Mexican gross domestic product.

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