A free-floating currency, a large and diversified economy, the absence of capital controls and an increasingly attractive tax regime continue to make Mexico one of the stars of emerging market portfolio investment. The Mexican peso remains the second-most widely traded emerging market currency after the Chinese yuan, and is often treated by investors as a proxy for emerging market sentiment more broadly. The country’s capital markets are sophisticated and highly regulated, and the advent of new…
From The Report: Mexico 2019
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After several years of innovation – notably the advent of new investment vehicles and the arrival of a second bourse – alongside the change in government at the end of 2018, the coming years are likely to be characterised by consolidation. Domestically, uncertainty around sectoral policies – specifically in energy, infrastructure and banking – of the administration of President Andrés Manuel López Obrador may introduce periodic volatility in the securities of those sectors. Despite the many strengths of Mexico’s capital markets, subdued economic activity and falling inflation open the possibility for the central bank to ease interest rates in 2020. This chapter contains an interview with José-Oriol Bosch Par, CEO, Mexican Stock Exchange.