MEXICO CITY — Mexico’s financial system is resilient and solid despite international economic and geopolitical volatility, the central bank chief said on Wednesday during the introduction of the monetary authority’s financial stability report.
“The Mexican financial system maintains a solid and resilient position,” the central bank said in its biannual stability report, stressing that the country meets minimum capitalization levels.
Earlier on Wednesday, the U.S. Federal Reserve raised its benchmark interest rate by three-quarters of a percentage point in a bid to stem surging inflation as well as a projected economic slowdown and rising unemployment for Mexico’s top trading partner.
Mexico’s central bank signaled in its report that financial stability faces risks due to remaining effects of the COVID-19 pandemic, repercussions from Russia’s invasion of Ukraine and global inflationary pressures.
Banxico, as the bank is known, also warned of lower-than-expected global economic growth, prolonged and accentuated weakness in Mexico’s domestic consumption and investment, plus possible adjustments to the credit rating for state oil company Pemex. (Reporting by Brendan O’Boyle and Kylie Madry; Editing by David Alire Garcia and Grant McCool)