In view of the most likely scenario that oil prices remain low for some time to come and the decreasing oil production trend, the federal government recently sent investors a sign of fiscal responsibility by announcing cuts to 2015 budgeted spending, amounting to 0.7 percent of GDP, despite the fact that oil revenue for the year is almost fully hedged.
5 Second, the U.S. Fed is widely expected to begin normalizing monetary policy this year. Volatility has hit the Mexican foreign exchange market, with the peso depreciating significantly, along with most other world currencies. However, the adjustment in Mexico has been orderly, with abundant liquidity prevailing in market operations. Furthermore, during 2015, holdings of peso-denominated government bonds by nonresidents have remained stable.