The degree of success of these and other reforms should be defined in terms of enhancing the economy’s potential. This will depend heavily on the quality of implementation, in the sense that these reforms actually lead to greater market flexibility and investment, and generate substantially effective competition. Moderate cyclical economic recovery in Mexico is underway on the back of stronger U.S. performance.
The legislation also introduced some other changes including a clearer definition of the goals of the Central Bank. Extensive actions were launched to enhance the Central Bank’s capacity and ensuring its delivery of an intrusive and effective risk-based financial supervision as well as a pro-active approach to systemic financial stability policy.