Latin American Economy & Business - June 2016 (ISSN 1741-7430)

In early 2016, financial stress in Mexico reached the highest level since the global financial crisis according to one measure. This appears to have been the result of investors’ general aversion to emerging markets risk. The IMF’s approval, at the end of May 2016, of a new two-year US$88bn flexible credit line (FCL) should mean that any further slowing of the global economy, or future volatility in financial markets, should have limited impact on Mexico.