Baffi’s caution with regard to the cogency of the exchange rate constraint may have proved excessive, perhaps, but only because System realignments were much more frequent than could have been predicted when the Exchange Rate Mechanism was agreed.
This includes public bidding for oil and gas exploration and production contracts, and permits for production of oil products and petrochemicals, transport, storage, distribution, and sale of hydrocarbons and hydrocarbon products. Also, permits are to be granted to generate and sell electric power, as well as import electricity using Mexico’s National Electric System.