Since 1994, Mexico’s central bank is autonomous in defining and implementing the county’s monetary policy. Monetary policy decisions taken by Banco de México (Banxico) are aimed on guaranteeing the purchase power of the Mexican peso, based on inflation control and exchange rate monitoring.
The monetary policy implemented by Banxico has created favorable conditions for sustained economic growth, reaching stable and significantly low inflation levels. According to INEGI, at the end of May 2019 the inflation rate was 4.28%. According to the Central Bank estimates, it is forseen that during 2019 and 2020 inflation will maintain its downward trend, to annual levels of 3.4% and 2.7%, respectively.
Likewise, as of May 2019, Mexico has accumulated international reserves of over USD 177 billion, sufficient enough to overcome any volatility in the international markets.
 Banco de México.
Furthermore, the International Monetary Fund, has acknowledged the Mexican economy soundness, and in November 2018 ratified the flexible credit line extended to Mexico of USD 74 billion.
As a consequence, México has funds of over USD 251 billion to face any volatile environment with more strength.
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.