MEXICO

On June 7, the Bank of Mexico (Banxico) opened a public consultation to modify the rules for foreign exchange hedges auctions. The regulatory proposal modifies Circular 3/2017, establishing a daily settlement regime for these hedges, replacing the current one which is valuation. For this purpose, it presents the new formulas that will be used for the settlement calculation. The text will be open for comments until June 18, and interested parties may send their opinions through the following link.

According to Banxico, the regulations also seek to include the calendar of non-working days of the United States of America so that the credit institutions that participate in the auctions “improve their possibilities of adequately covering the exchange risk arising from the maturities of the hedging operations”.

The regulation also establishes that the regulator may reserve the right not to accept bids in the hedging auctions presented by those institutions that have defaulted on the payment of any obligation payable in favor of Banxico for any transaction in the last twelve months.