I would like to focus my comments today on how this external scenario is constraining the Mexican economy, and what tasks await on the domestic front. My main message will be twofold. First, although Mexico’s ongoing economic recovery from the global financial crisis of 2008 seems to be firmly grounded, its continuation and possible strengthening are highly dependent on future global economic conditions.
Its largest component, in terms of the amounts outstanding, is the market for single-currency interest rate swaps – the bulk of which are Australian dollar denominated. Australian banks (both locally incorporated and foreign bank branches) have aggregate notional principal amounts outstanding in this market of around $ trillion.2 But banks operating in Australia are not the only entities to transact in this market.