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LatinNews Regional Monitor: Mexico - 18 October 2018
In brief: Mexico
* Mexico’s Finance Minister José Antonio González Anaya and US Treasury Secretary Steven Mnuchin have announced a new Memorandum of Understanding (MoU) to update both governments’ Exchange Stabilization Agreement (ESA) – a framework for a financial support facility between the two governments. The ESA was last updated 24 years ago, in the context of the North American Free Trade Agreement (Nafta). According to a US Treasury statement, the ESA has been amended to increase the potential size of the Treasury’s swap line with Mexico, from the existing US$3bn to US$9bn, “reflecting the tremendous growth in trade and financial flows that have occurred between our economies over the last 24 years”. The statement also notes that this facility will continue to be complemented by a swap line of US$3bn with the US Federal Reserve. The announcement follows the recent conclusion of a deal to update Nafta, an agreement to be known as US-Mexico-Canada Agreement (USMCA).
