Bank of Mexico
The Bank of Mexico
or the Banco De Mexico as it’s known in Spanish is the central bank
of Mexico, based out of Mexico City. It was established in 1925 and is currently governed by economist Guillermo Ortiz Martinez the former Mexican ambassador to the International Monetary Fund. He replaced Miguel Mancera in 1998. He is also part of the international “Group of Thirty,” a faction of powerful people in regards to the world economy. The bank’s current stance on economic policy is to keep the interest rates at around 7.5% and the general banking system remains strong with profitable privatization and $85 billion dollars in reserves according to 2006 figures. It has significantly improved since the 1994 crisis.
Up until 2008 to control interest rates they used a unique method known as the Corto, where they left the banking system short of its daily monetary demand
when warranted. It now mimics the Federal Reserve Bank in the United Sates.
The Bank of Mexico issues the PESO currency
, which is subdivided in to 100 centavos. They use the common system of bank notes and coins as follows: Banknotes: $20, $50, $100, $200, $500, $1000; Coins: 50˘, $1, $2, $5, $10; They also rarely use the 5˘, 10˘, 20˘, $20, $50, $100 set of coins.
Although the Peso is no longer a nationally accepted currency in the United States some areas close to the Mexican & US border do tend to take the currency.
Despite a common view that Mexico is a very poor country they have the 12th largest economy in the world and the highest income per capita of any Latin America country. Thanks to firm control by the bank, Mexico is an emerging economy and is set to be one of the 5 largest economies by 2050, according to Goldman Sach’s
Under their financial systems policy the Bank of Mexico allow the following (for the general public and payroll/business) without the bank charging any commission or set up fees:
- The opening and maintaining of a regular account
- The issuing of a standard debit card and a free replacement when it expires or when it is worn out
- Withdrawals of cash from automated tell machines ATM
- The ability to pay for goods and services using the debit card
- A right to close the account at anytime without reason
This is similar to the United States
, United Kingdom
and similar western banks.
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