Overview
- The IMF Executive Board approved a two-year renewal, lowering access at Mexico’s request from 300% to 200% of quota, equal to about 17.825 billion SDR (roughly $24 billion) from $35 billion previously.
- Mexican authorities will keep the facility as a precautionary buffer and do not plan to draw on it except in a contingency.
- The Fund affirmed Mexico meets all FCL qualification criteria, citing sound fiscal and monetary frameworks, effective financial regulation, and stronger reserves.
- IMF officials flagged weak domestic activity constrained by fiscal consolidation, a still-restrictive monetary stance, and trade tensions, and urged continued fiscal prudence and structural improvements.
- The decision marks Mexico’s 11th FCL since 2009 and continues a gradual downscaling from a peak of about $88 billion in 2017.