🏛🇲🇽US Treasury FX Report: Mexico

*The IMF estimates that Mexico’s fiscal support package totaled less than 1% of GDP, the lowest amount of fiscal support among the G20 and regional peers.

*Mexico’s goods trade surplus was 3.2% of GDP, up from 0.4% in 2019. Notably, the country’s bilateral goods trade surplus with the United States in 2020 was $113 billion (the second highest after China, at $311 billion), up 11% from 2019.

*Mexico has intervened in foreign exchange markets only minimally since 2017. Notably, almost all of its interventions over the past decade have been foreign exchange sales that have supported (strengthened) the currency.

*In April 2020, Mexico drew on $6.6 billion of its $60 billion swap line with the Federal Reserve and, as of end-March 2021, has repaid $6.2 billion.

*Banxico has intervened minimally in forwards markets to defend the peso, most recently selling $2 billion in March 2020 during heightened financial market pressures. The last time the central bank purchased foreign exchange from the private sector was in October 2011, where net foreign exchange purchases during the year totaled 0.4% of GDP ($4.6 billion).