Mexico Buys $2.88 Billion of Central Bank Reserves (Update3)
Mexico’s government bought $2.88 billion of central bank international reserves that it will use to help meet payments on all foreign debt coming due in 2006 and 2007.
The funds, which the government acquired by selling pesos to the Banco de Mexico, combined with $1.89 billion the government has available from earlier foreign bond sales will cover the $4.77 billion of foreign debt maturing in the next two years, the Finance Ministry said in a statement. Finance Minister Francisco Gil Diaz said that the dollar purchase will allow Mexico’s government to stay out of international debt markets until 2007.
More: quote.bloomberg.com
Mexico proven oil reserves dip to 16.470 bln bce
State oil monopoly Pemex said Thursday that Mexico's proven oil and gas reserves dipped to 16.470 billion barrels of crude oil equivalent (bce) at the end of 2005, down from 17.6 billion bce a year earlier.
Earlier this week Pemex, one of the main suppliers of oil to the United States, reported a slip in total oil and gas reserves to 46.418 billion bce at the end of 2005, down from 46.914 at the end of 2004.
Within that figure, probable reserves stood at 15.784 billion bce versus 15.8 billion a year earlier and
Mexico Central Bank Reduces Rates to Boost Economy (Update3)
Mexico's central bank cut the benchmark rate from a 29-month high to spur economic growth. It was the first time the bank used a rate target to ease credit.
Banco de Mexico, which normally adjusts rates by changing the amount it lends banks overnight at higher rates, today did so by saying by how much it would allow banks to drive down the overnight rate. In a statement, the bank's board said it would ``allow an easing of monetary conditions of no more than 25 basis points.'' A basis point is
Mexico, Venezuela, Chile: Latin America Local Bond Preview
The following events and economic reports may influence trading in Latin American local-currency bonds today. Bond yields are from the previous session.
The central bank raised its growth forecast for the economy next year to 6.2 percent from 4 percent on Dec. 29. The central bank will rebuild international reserves to a level comparable to the total available before Argentina's $9.8 billion payment to the International Monetary Fund, bank president Martin Redrado said.
The yield on Argentina's 5.83 percent bond maturing in December 2033 fell 2 basis points to 6.31 percent on Dec. 29,
Royal Gold buys royalties in Nevada, Mexico
Mineral royalty company Royal Gold Inc. said Thursday it will buy two royalties on mining operations in Nevada and Mexico from Kennecott Minerals Co. for $25 million.
Royal Gold (NASDAQ: RGLD) is based in Denver. Kennecott is based in Salt Lake City.
Royal Gold doesn't operate mines itself, but provides money for projects in return for royalties -- or percentage-based payments -- on the value of the minerals produces.
Royal Gold said it bought a 3 percent net smelter return on the Robinson gold, copper and molybdenum mine in eastern Nevada. The mine is operated
Mexico Will Keep Lowering Interest Rates, Ortiz Says (Update2)
Mexico's central bank will keep cutting its benchmark lending rate because inflation is in line with year-end targets, bank Governor Guillermo Ortiz said.
``We've started an easing cycle, we're lowering interest rates,'' Ortiz, 57, said in testimony before the Senate today. ``We're unlinked to the monetary cycle in the U.S.''
Ortiz said the bank is more focused on core inflation -- which excludes volatile fresh food and energy prices -- than the overall inflation rate. His comments suggest the bank will cut interest rates twice more before year-end even if rising fuel
Mexico bank chief backsoil windfalls fund initiative
Mexico's central bank governor has thrown his weight behind an initiative to use windfall oil revenues to buttress economic stability.
Guillermo Ortiz told the Financial Times this week that plans promoted by President Vicente Fox to set up a stabilisation fund along the lines of an existing - and highly successful - Chilean model would significantly reduce uncertainty ahead of Mexico's presidential election next July.
"It would be an important piece of legislation to have in place particularly with an election and would go a long way to reducing the uncertainty and risks associated with a
Mexico's Central Bank Reduces Rates to Boost Economy (Update1)
Mexico's central bank reduced its benchmark lending rate for a second time in as many months to help jumpstart a slowing economy, taking advantage of slowing inflation.
The Bank of Mexico said in a statement it will allow the overnight rate to decline to 9.25 percent from 9.50 percent following a reduction of 0.25 percentage point at its Aug. 26 meeting, which marked the first time ever the central bank set a rate for the market.
``The Mexican economy reduced its expansion rate during the first half of the year, showing lower
Petrobras Says It Discovers Gas Reserves in Gulf of Mexico Well
Petroleo Brasileiro SA, Brazil's state-controlled oil company, found gas reserves in a well in Gulf of Mexico, the company said in a statement sent by e-mail last night.
The company said it found gas in the first well operated by its Petrobras America unit. The company said gas reserves are of ``high quality.'' The Rio de Janeiro-based company owns 80 percent of the reserve, the statement said.
More: bloomberg.com
Mexico's Inflation Rate Fell to Record Low of 3.05% in October
Mexico's annual inflation rate fell to a record low in October, adding to speculation that the central bank will keep cutting the benchmark lending rate to bolster economic growth.
Inflation was 3.05 percent in the 12 months through October, down from 3.51 percent in September, the central bank said. That's the lowest annual inflation rate since the central bank began keeping records in 1969. Mexico's monthly inflation rate fell to 0.25 percent in October from 0.4 percent the previous month.
The central bank, taking advantage of the slowdown in inflation,
Mexico's foreign direct investment falls
Foreign direct investment in Mexico was US$7.46 billion (euro6.13 billion) in the first half of this year, the Economy Department said Friday.
The amount was below the US$10.29 billion (euro12.73 billion) reported in the like 2004 period, when the equity buyouts of local bank BBVA-Bancomer and cement company Holcim Apasco by their parent companies boosted investment.
By excluding those inflows from the comparison, FDI was 8.3 percent higher than in the first six months of 2004, the Economy Ministry said in a statement.
Of the US$7.46 billion in first-half FDI, US$2.12 billion (euro1.74 billion) was in new investment, $2.4
