The News
Sunday 21 of July 2024

EPN: Economic Stability is the Priority

79 Convención Bancaria
79 Convención Bancaria
President reassures bankers that Mexico's finances are on the right track

President Enrique Peña Nieto said Thursday that, given the complex global situation, preserving the nation’s economic stability is his first priority.

Speaking at the 79th Convención Bancaria in Acapulco, the president added that stability is the key ingredient for long-term growth.

“Stability is the basis for sustained growth and long-term development. For this reason, the government has taken all the necessary steps to preserve our macroeconomic stability and we will continue to work towards this goal. My administration will continue to create stable conditions despite the international economic stability, and we will also implement the structural reforms,” said Peña Nieto.

The president continued by saying that Mexico is well prepared to cope with the complex international financial climate.

“Fortunately in Mexico we prepared for this in advance, while other nations are only just beginning to implement reforms.”
– President Enrique Peña Nieto

“Fortunately in Mexico we prepared for this in advance, while other nations are only just beginning to implement reforms. In our case, we have already put these adjustments in place. Moreover, Mexico has distinguished itself from other economies because we have macroeconomic stability and a robust banking system,” he said.

Peña Nieto urged bankers present at the event to remember the primary objective, which is to ensure that there is more affordable credit available. The GDP growth over the course of the past few years is a positive indication of this trend, said the president.

“Credit has grown several times more than the national economy. Interest rates are dropping remarkably and, in the case of personal credit, rates have dropped to 8.6 percent,” he said.

Mexico Central Bank Gov. Agustín Carstens, also speaking at the Acapulco event, announced that the U.S. dollar Interbank Electronic Payments System (SPEI) will begin operating in April.

Mexico Central Bank Gov. Agustín Carstens
Mexico Central Bank Gov. Agustín Carstens speaks at the 79th Convención Bancaria in Acapulco, Guerrero, Thursday. Photo: CAPITAL MEDIA/Ixbalanque Danell.

The system is of vital importance for the country given the growing tendency of U.S. dollar-denominated transfers following the ever increasing integration of Mexico in the global economy, said the governor.

“The new regulation allows banks to offer accounts to a certain group of Mexicans, mainly companies. The SPEI will pave the way for electronic dollar-denominated transfers between businesses to be completed within 24 hours by cutting out inefficient and unnecessary procedures,” said Carstens.

The governor added that the system requirements will mean that domestic dollar transfers will now be much more transparent, and that banks will operate according to a much stricter scheme. This will improve the credibility of credit institutions’ preventative processes as well as promoting a more positive image of the domestic financial system to the rest of the world.