In the last six years, the Bank of Mexico (Banxico) has accumulated losses totaling 737.5 billion pesos. Given this situation, it is necessary to establish an acceptable level of social capital, as well as reserves to cover potential future losses and to prevent the bank from going into negative capital. In case there is still a positive balance after all this, it will be handed over to the Federal Government.
On this occasion, Banxico will deliver a significantly smaller surplus to the Secretary of Finance than estimated by most analysts, representing approximately 0.05 percent of the Gross Domestic Product (GDP), that is, around 18 billion pesos. This amount has been considered practically symbolic by experts on Banxico issues, as it will not significantly contribute to the government's fiscal goals.
This is the first transfer of surpluses after six years of operational losses for Banxico. The amount delivered is much lower than originally estimated, only a tenth of Citi's estimate and a sixth of Banamex's calculation, according to specialists.
Banamex economists calculated a surplus from Banxico of 109.4 billion pesos, based on exchange gains from last year, which amounted to 826.3 billion pesos due to the depreciation of the peso against the dollar. Meanwhile, Citi economists for Mexico estimated that the transfer would be 0.5 percent of GDP, or 175 billion pesos. However, the delivered surplus turned out to be much lower.
According to the Law of the Bank of Mexico, in order to deliver a surplus to Finance, there must be a positive operating surplus and losses from previous years must be compensated. These conditions are fundamental for Banxico to make the delivery of surpluses as legally established.
