Last Update: 11/17/2023
Since 1994, Mexico’s central bank, Banco de México (Banxico) has been autonomous in defining and implementing the county’s monetary policy. Monetary policy decisions taken by Banco de México are aimed on guaranteeing the purchase power of the Mexican peso, based on inflation control and exchange rate monitoring.
The monetary policy implemented by Banco de México has created favorable conditions for sustained economic growth, reaching stable and significantly low inflation levels. According to INEGI, as of October 2023 the inflation rate is 4.26%.
Likewise, as of October 2023, Mexico has accumulated international reserves of over USD 203 billion, which allows it to face the volatility of the international environment.
 Banco de México.
Banco de México carries out its monetary policy by establishing a target rate for one day bank lending transactions. The conditions under which Banco de México provides or withdraws such liquidity ensures the compliance with the objective established for one day interbank lending rate.