The AMLO government is left (again) without the remnants of the Bank of Mexico

The central bank reported this Friday night that in 2022 it had a loss of 340.024 million pesos (mdp), mainly due to the strength of the Mexican peso against the US dollar.

The peso appreciated 4.9% against the greenback in the reference period.

“Of said loss, 42.6% is explained by the difference between the yields obtained in the investment of the reserve of international assets and the interests that are paid for the liabilities in national currency,” the bank detailed in a statement.

The federal government has confronted Banxico in the past for not giving it the money, since it sought to pay off the debt with those resources.

What are Banxico’s remnants?

Banxico’s remnants are resources that come from the positive balance resulting from the operations carried out by the central bank. Based on these movements, a cut is made at the end of the year and delivered to the Federation Treasury in April.

How important are they?

By law, the SHCP must allocate 70% of these resources to reduce the amount of public debt, and the rest to funds to contribute to the financial stabilization of the country.