Banco De México and Recent Developments in Domestic Public Debt Markets

20 Pages Posted: 13 Apr 2013

See all articles by José Sidaoui

José Sidaoui

Bank of Mexico

Julio A. Santaella

Instituto Tecnológico Autónomo de México (ITAM)

Javier Perez

Independent

Date Written: October 1, 2012

Abstract

This paper describes major policy actions that have recently contributed to the development of the Mexican domestic-currency debt market, and concomitant benefits. Among the most important are a significant reduction in exchange-rate exposure and a decline in refinancing risk for the government and private sectors alike. Another positive outcome of the development of government securities markets has been investor base diversification. This paper explains how capital inflows have translated into larger and more stable foreign investor participation in local debt markets. Empirical evidence presented suggests that these capital inflows have had positive funding implications, lowering both interest-rate levels and volatility.

Full publication: Fiscal Policy, Public Debt and Monetary Policy in Emerging Market Economies

Keywords: Public debt management, financial markets, Latin America

JEL Classification: H63, E63, N26

Suggested Citation

Sidaoui, José and Santaella, Julio A. and Perez, Javier, Banco De México and Recent Developments in Domestic Public Debt Markets (October 1, 2012). BIS Paper No. 67q. Available at SSRN: https://ssrn.com/abstract=2205691

José Sidaoui (Contact Author)

Bank of Mexico

Av. 5 de Mayo 18
Piso 4
Mexico City, 06059
Mexico

Julio A. Santaella

Instituto Tecnológico Autónomo de México (ITAM) ( email )

Rio Hondo No.1 Col. Tizapan-San Angel
del Centro de Economia Aplicada
01000 Mexico, D.F
Mexico
5628-4193 (Phone)
5628-4058 (Fax)

Javier Perez

Independent ( email )

No Address Available

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