Bank of Mexico states financial system is stable

On Wednesday, the Bank of Mexico reported on financial stability and said that the country's financial system is stable and sound. Moreover, the bank’s officials added that the level of risks observed during the pandemic has decreased significantly.

The stability of the financial system is confirmed by the fact that, according to the bank, the level of capital and liquidity are several times higher than regulatory minimums.

On the other hand, this doesn’t mean that external factors don’t affect Mexico's economy. On the contrary, the bank stressed that as the state of the global economy has worsened, the country is now facing high inflation and the prospects for economic growth have deteriorated.

In addition, the Bank of Mexico predicts a further deterioration in the global economy, lower global economic growth, and a drop in aggregate demand. Also, the bank notes that the financial stability of the country could be undermined by the likely downgrading of the credit ratings of Mexico and the state oil company Pemex.