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☆ Mexico is trying to be best new trade buddies with both the US and China — but it might not be able to handle the pressure
▼ + stars: | 2023-09-20 | by ( Cork Gaines | ) www.businessinsider.com time to read: +7 min

Mexico is now America's top trade partner thanks to US-China tensions and "nearshoring." AdvertisementAdvertisementMexico's infrastructure is not readyBeing a more attractive trade partner to the US is one thing. China is now Mexico's largest trading partner globally, and Mexico is already China's second-largest trade partner in Latin America. China's Foreign Direct Investment in Mexico is still small (about 1% of Mexico's Foreign Direct Investment) but it is its fastest-growing source of outside investment. If Mexico's economy is going to surge, it needs to be more than just a middleman.

Persons: Luis Torres, —, Tesla, JULIO CESAR AGUILAR, Xi Jinping, Lintao Zhang, Kearney, Gerardo Esquivel Organizations: Service, Federal Reserve Bank of, Foreign, Investment, Bloomberg, Getty, Publishing Locations: Mexico, China, Wall, Silicon, Federal Reserve Bank of Dallas, Monterrey, Nuevo Leon, Nuevo León, Latin America, Yantai, Shandong Province, Mexican, United States

MEXICO CITY, Dec 15 (Reuters) - The Bank of Mexico raised its key interest rate by an expected 50 basis points to a record 10.50% on Thursday, tempering its monetary tightening pace amid a slowdown in inflation while suggesting it could hike rates at least once more. The decision follows four consecutive 75-basis-point hikes and comes after the U.S. Federal Reserve increased its key interest rate by 50 basis points Wednesday after four consecutive hikes of its own of three-quarters of a percentage point. "The board considers it will still be necessary to raise the reference rate in its next monetary policy meeting," said Banxico, as the Mexican central bank is known. "Subsequently, it will assess if the reference rate needs to be further adjusted as well as the pace of adjustments based on the prevailing conditions," it added. Banxico reiterated that inflation is projected to converge to its 3% target in the third quarter of 2024.

☆ Brazil's Goldfajn elected to replace ousted IDB president
▼ + stars: | 2022-11-20 | by ( ) www.reuters.com time to read: +3 min

WASHINGTON, Nov 20 (Reuters) - The Inter-American Development Bank (IDB) said on Sunday its board of governors has elected Brazil's Ilan Goldfajn as president of the financial institution, after Mauricio Claver-Carone, the first American to lead it, was ousted over ethics violations. Headquartered in Washington, the IDB is a key investor in Latin America and the Caribbean, responsible for $23.4 billion in financial commitments in 2021 and hundreds of infrastructure, health and tourism projects. In a statement, U.S. Treasury Secretary Janet Yellen congratulated Goldfajn and said the United States stands by the IDB as the region's premier development finance institution. "We are counting on President Goldfajn to lead this organization to be an engine of change and progress for our neighbors across Latin America and the Caribbean," Yellen said. Brazil's outgoing President Jair Bolsonaro nominated Goldfajn, the former president of the country's central bank and currently the head of the International Monetary Fund's Western Hemisphere department.

☆ Brazil's Goldfajn elected to replace ousted IDB president, sources say
▼ + stars: | 2022-11-20 | by ( ) www.reuters.com time to read: +2 min

WASHINGTON, Nov 20 (Reuters) - The governors of the Inter-American Development Bank (IDB) have elected Brazil's Ilan Goldfajn as president of the financial institution after Mauricio Claver-Carone, the first American to lead it, was ousted over ethics violations, two sources told Reuters. Headquartered in Washington, the IDB is a key investor in Latin America and the Caribbean, responsible for $23.4 billion in financial commitments in 2021 and hundreds of infrastructure, health and tourism projects. The scandalous ouster of Claver-Carone had made it more likely that the next candidate would hail from Latin America, following prior precedent. Brazil's outgoing President Jair Bolsonaro nominated Goldfajn, the former president of the country's central bank and currently the head of the International Monetary Fund's Western Hemisphere department. IDB shareholders have underscored the importance of rebuilding trust in the institution after Claver-Carone's rocky, nearly two-year tenure.

☆ Mexico president confirms nomination of cenbanker Esquivel for IDB chief
▼ + stars: | 2022-11-11 | by ( ) www.reuters.com time to read: +1 min

MEXICO CITY, Nov 10 (Reuters) - Mexican President Andres Manuel Lopez Obrador confirmed on Thursday the nomination of Bank of Mexico Deputy Governor Gerardo Esquivel for the presidency of the Inter-American Development Bank (IDB), Latin America's main lending arm. "I promise to do my best in the process of running for the appointment," Esquivel said in a series of tweets on Thursday evening. Esquivel's term at the Bank of Mexico is currently set to end in December, though he could be asked to stay on. The former chief of the IDB, Mauricio Claver-Carone, was sacked in September after an investigation found he had had an intimate relationship with a subordinate. Reporting by Mexico City Newsroom; Additional reporting by Kylie Madry; editing by Cassandra Garrison and Sandra MalerOur Standards: The Thomson Reuters Trust Principles.

MEXICO CITY, Nov 10 (Reuters) - The Bank of Mexico hiked its key interest rate by 75 basis points to a record 10.00% on Thursday, in line with forecasts and following in the footsteps of the U.S. Federal Reserve's recent three-quarters of a percentage point increase. In a departure from recent decisions, the bank's five board members did not vote unanimously for the increase, with Deputy Governor Gerardo Esquivel voting to hike the key rate by 50 basis points. The bank has raised its target rate by 600 basis points since June 2021, as inflation has blown past Banxico's target rate of 3%, plus or minus one percentage point. Inflation in Mexico slowed in October, official data on Wednesday showed, reaching an annual headline rate of 8.41%, down from the 8.7% annual rate the prior month. Reporting by Anthony Esposito and Brendan O'Boyle; Editing by Christian Plumb and Richard ChangOur Standards: The Thomson Reuters Trust Principles.

☆ Mexico nominates central banker Esquivel for IDB presidency -sources
▼ + stars: | 2022-11-09 | by ( ) www.reuters.com time to read: +2 min

MEXICO CITY/WASHINGTON, Nov 9 (Reuters) - Mexico has nominated Mexican central bank board member Gerardo Esquivel for the presidency of the Inter-American Development Bank (IDB), four people familiar with the matter said on Wednesday. Headquartered in Washington, the IDB is a key investor in Latin America and the Caribbean. Esquivel, 56, is regarded as perhaps the most doveish member of the board of the Bank of Mexico (Banxico), and his term there is currently scheduled to conclude in December. Former IDB President Mauricio Claver-Carone, the only American president in the bank's history, was fired in September after an investigation showed he had an intimate relationship with a subordinate, Reuters exclusively reported. ET on Nov. 11, with the bank's governors to vote on the next president early on Nov. 20, an IDB official said.

☆ IMF projects Mexico's economy will slow in the near term
▼ + stars: | 2022-11-04 | by ( ) www.reuters.com time to read: +2 min

MEXICO CITY, Nov 4 (Reuters) - The International Monetary Fund (IMF) on Friday forecast Mexico's economy will grow 2.1% in 2022 and 1.2% in 2023, saying "economic growth is expected to slow in the near term reflecting weaker U.S. growth and tighter global financial conditions." The fund also said it welcomed the "proactive approach" from Mexico's central bank, known as Banxico, in tackling inflation with interest rate hikes. Further rate hikes may be needed "for some time" due to uncertainty around inflation in 2023, the IMF said. They also noted that fostering more private participation in the energy sector would help boost competitiveness and investment, the IMF said. read morePresident Andres Manuel Lopez Obrador is looking to expand output from Mexico's fossil fuel-dependent state energy companies, including the heavily indebted Petroleos Mexicanos(PEMX.UL).

MEXICO CITY, Oct 26 (Reuters) - Bank of Mexico board member Gerardo Esquivel cautioned against increasing the monetary policy rate to "excessively" restrictive levels as the economy remains weak, saying the bank's current rate-hiking cycle could end with rates between 10%-10.25%. But he stressed that it was "important to start thinking about" what that level would be using the so-called ex ante real rate, defined as the difference between the nominal interest rate and expected inflation. His comments come after the minutes of Banxico's last monetary policy decision highlighted that further rate hikes were on the table. The minutes said the board would "assess the magnitude of the upward adjustments in the reference rate" in coming decisions. "We're already at a restrictive level that the Fed is clearly not at," he said.

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