“Mexico to double berry output in four years with China’s help”

10/24/2016 EJInsight

Mexico expects its berry production to double in the coming four years with rising demand from China, the world’s second largest economy.

Mexican berry exports, which include blueberries, raspberries, blackberries and strawberries, are worth about US$1.5 billion a year, up 20 percent every year, Mario Alejandro Andrade Cárdenas, vice president of Foreign Trade of the National Agricultural Council (CNA), told EJ Insight.

“With such strong growth, which is partly contributed by China, it is likely that we will be able to double our production of berries in about four years,” Andrade said.

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Bank of Mexico Stresses Inflation Risk in Raising Rates

10/13/16 The Wall Street Journal 

Agustin_CarstensMEXICO CITY—The Bank of Mexico’s five board members all agreed last month that higher interest rates were necessary to stave off incipient inflation pressures amid a number of external and local risks to the Mexican peso, minutes of the meeting showed Thursday.

The board voted unanimously on Sept. 29 to raise the overnight interest rate target by a half percentage point to 4.75%, its third rate increase of the year, after the peso had again reached new lows against the U.S. dollar.

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Mexico’s Peso Just Can’t Catch a Break as Global Risks Abound

10/13/16 Bloomberg

pesoFor investors who think calmer seas await the Mexican peso after the U.S. presidential election, the top forecaster of the currency has some bad news: The next proverbial Donald Trump is just around the corner.

The peso is poised to lose whether or not the Republican candidate makes it to the White House in next month’s vote, says Juan Carlos Rodado, director of Latin America research at Natixis North America and the most-accurate forecaster in the third quarter, according to Bloomberg rankings.

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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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U.S. election outcome could alter next Mexico rate move: Carstens

10/4/16 Reuters

380px-Agustin_CarstensMexico’s central bank may not follow any impending interest rate increase by the U.S. Federal Reserve if the outcome of the U.S. presidential election is seen as favorable to Mexico, the bank’s Governor Agustin Carstens said on Tuesday.

Asked on local television whether Mexico would seek to follow a rate hike by the Fed, Carstens referred to the November election, speaking just a few days after the Mexican central bank raised its benchmark interest rate by 50 basis points.

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Citi to Invest $1 Billion in Mexico Operations, Renames Unit

10/04/16 The Wall Street Journal

citigroupCitigroup Inc. added its name to its closely watched Mexico unit and announced plans to upgrade its retail business in the country with an investment of more than $1 billion by 2020.

The bank said Tuesday the unit, previously called Banco Nacional de México or Banamex, would now be known as Citibanamex. The change ties the Mexican unit, which ran into problems while operating relatively independently a few years ago, more closely to its U.S. parent.

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Mexico’s central bank says U.S. to include TIIE 28 swaps in contracts

10/03/16 Reuters

Mexico’s central bank said on Monday that the U.S. Commodity Futures Trading Commission has decided to include the bank’s interbank equilibrium interest rate of 28 days denominated in Mexican pesos in its list of swap contracts.

In 2015, the central bank determined that the 28-day TIIE swaps, the main local derivative, would be negotiated only in markets and platforms recognized by local financial authorities, part of a change in its operating rules.

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