The Mexican peso sees more trade than many advanced-nation currencies, and it is the most traded among those of emerging economies. 4 Additionally, the local debt market has become attractive to foreign holders, and this is beginning to be the case for foreign issuers as well.
Foreign holdings of local‐currency government bonds, as a percentage of total domestic public debt outstanding, have run at around 37 percent. This share has remained relatively stable in the wake of brusque market reactions to talk of eventual tapering of Federal Reserve asset purchases last year and so far continues to do so.