On a year-to-date basis, the peso depreciated against the US dollar by 12.3 percent as it closed at $ on 15 September 2008. This is on account of rising risk aversion due to worries over global economic slowdown and credit tightening. Concerns over rising inflation further added pressure against the peso.
Initially, the relatively flat yield curve until August 2001 and the persistent decline in stock prices until September seemed to induce many investors to shift parts of their portfolios out of the capital markets and into shorter-term assets, such as those included in M3.