In the middle of that year, to counter pressures from currency depreciation and other supply  BIS central bankers’ speeches  3  shocks which had pushed inflation off the convergence path to its permanent target, the Bank of Mexico raised its reference interest rate by 75 basis points.
In modern economies the central bank cannot actively manage financial flows across its borders, even if all flows are transacted within the formal financial sector. This is true whatever the nature of the country’s exchange rate arrangements, and irrespective of the rigour of stipulations and reporting requirements of the central bank.