The IMF approved a 2-year flexible credit limit of $35 billion for Mexico to prevent the crisis.
It was reported that the Board of Executive Directors of the International Monetary Fund (IMF) approved a 2-year flexible credit limit of $ 35 billion for Mexico.
In the statement made by the IMF, it was stated that Mexican officials intend to consider the new credit limit as a precautionary measure.
In the statement, it was stated that the approved $35 billion flexible credit limit was designed to prevent a crisis for Mexico.
It was stated in the statement that Mexico was deemed suitable for the credit limit thanks to its very strong economic fundamentals and institutional policy frameworks, macroeconomic performance and policy implementation history, and that this was the 10th credit limit issued for Mexico since 2009.
IMF First Deputy Managing Director Gita Gopinath, whose views were included in the statement, stated that the Mexican economy is in the midst of broad-based growth with strong consumption and investment.
‘MEXICO CONTINUES TO BE STRONG’
Gopinath stated that Mexico’s macroeconomic policies and institutional policy frameworks remain very strong, with a flexible exchange rate regime, reliable inflation targeting framework, fiscal responsibility law and a well-regulated financial sector.
Pointing out that the policies of Mexican officials continue to be prudent, Gopinath noted that while monetary policy focuses on controlling inflationary pressures, fiscal policy keeps the public debt under control.
Gopinath pointed out that Mexico continues to be exposed to increasing external risks, although they are lower than in previous years, and stated that the new credit limit will continue to play an important role in supporting the macroeconomic strategy of the Mexican authorities and provide assurance against risks while increasing market confidence. (AA)