LatinNews Regional Monitor: Mexico - 27 November 2019

* The International Monetary Fund (IMF) has approved a US$61bn successor two-year flexible credit line (FCL) for Mexico. Following the approval of the FCL, the IMF’s deputy managing director, David Lipton, praised Mexico’s “very strong policies and policy frameworks [which] have helped Mexico navigate a complex external environment”. Lipton adds, however that “the new arrangement under the FCL will continue to play an important role in supporting the authorities’ macroeconomic strategy by providing insurance against tail risks and bolstering market confidence”. In a press release of its own, Mexico’s finance ministry (SHCP) notes that “despite having experienced periods of high volatility in the past, Mexico has never made use of the resources of the FCL” and that the Mexican authorities will “continue to consider this financial instrument as a precaution for unforeseen external risks”.

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