The country’s reserves decreased 3.4% to 198.538 billion dollars, according to the weekly statement of the monetary authority as of September 10.
Mexico’s international reserves fell last week from an all-time high, mainly due to the government’s purchase of $ 7 billion from Banco de México (Banxico), the central bank reported on Tuesday.
Thus, the reserves of the second-largest economy in Latin America decreased 3.4% to 198,538 billion dollars, according to the weekly statement of the monetary authority as of September 10.
After the recent deposit of 12.131 billion dollars for Special Drawing Rights from the International Monetary Fund to Mexico to face the crisis derived from the Covid-19 pandemic, the country’s international reserves reached a record of more than 205,000 million dollars.
Banxico attributed the drop in reserves to the purchase of dollars by the government. The Ministry of Finance did not immediately respond to a request for comment regarding the use it hopes to make of these resources, but President Andrés Manuel López Obrador has proposed using those funds for the early payment of public debt.
The Treasury, for its part, reported that it would dialogue with Banxico so that the Government could take advantage of what was generated by the SDR to pay liabilities with high-interest rates, despite the debate that was generated regarding the appropriate use of these dollars.
The balance of the federal government’s gross external debt as of July is 116,018.5 billion dollars, while the net external debt of the entire public sector amounts to 227,327 billion dollars, according to official data.