“We do not know details about the possible plans that the federal government may have in this regard, we will be attentive if something comes up, but so far they have chosen to provide information on establishments where products can be purchased at a lower price; it provides information to the general public and promotes economic competition,” Rodríguez said when questioned by the senators.
The head of Banxico insisted before the senators that the conflict between Russia and Ukraine aggravated the panorama of economic recovery and inflation at a global level, and added that this armed conflict will affect supply in which monetary policy cannot influence.
“If the duration of the conflict is extended and depending on whether there is an increase in sanctions (on Russia), among other economic variables, it may be necessary to review the inflation forecast,” Rodríguez pointed out.
AMLO apologizes to Banxico
One of the most recurrent themes in the appearance this Thursday was what happened on March 24, when President López Obrador reported in his morning conference that Banxico had raised the rate to 6.5%. The official decision would be announced later that same day and the fact provoked outrage among economists and politicians, who claimed it was a violation of the central bank’s autonomy.
That same day, at the Banking Convention, the president apologized for having advanced the information. Later, he confessed that it was the Secretary of the Treasury, Rogelio Ramírez de la O, who revealed that information to the president. In the Senate, some opposition politicians called for the finance secretary to be removed.
Banxico’s governor said that by law, heads of the Ministry of Finance participate in the monetary policy meeting and that they will continue to participate in the following meetings.
“The president asked for a public apology not only to a servant but to all the members of the Board, which we thanked him for. This was an isolated event and we will continue with our work trying to bring inflation to its convergence,” he said. “It was a moment where he did not have all the information and it is an event that will surely not happen again.”
Banxico’s CBDC will be ready in 2025
The governor of Banxico announced that the implementation of the digital currency (also known as CBDC), is a strategic part of the central bank’s vision regarding the future payment scheme, so it is not intended to be a substitute for Current currency and banknotes.
“It is designed with the aim of being able to open accounts for banked and unbanked people, expand payment possibilities that are fast, efficient, secure and have a versatile asset that allows us to implement different functionalities,” he said.
With the development of this digital currency, users will be able to access tools that allow them to make payments and have discounts through a wallet.
“One of the great challenges we have is financial inclusion and together with other projects such as CoDi, the digital currency is going to be important to continue covering a larger population that today does not have access to these schemes,” he added.
The digital currency is going to be a record in the form of a liability that will be part of the existing monetary base of bills and coins.
It also seeks to generate means of payment aimed at financial inclusion, to make fast, secure, efficient and interoperable payments.
“The Bank of Mexico has designed a set of tools whose purpose is to empower users. It is not feasible to have a competitive financial system without participatory users and for this they need to have complete, reliable and timely information,” he said.
