Bloomberg News

Mexican Reserves Likely to Rise, Central Bank Official Says

February 02, 2012

Feb. 1 (Bloomberg) -- Mexico’s record level of international reserves is likely to increase further, said Javier Duclaud, the central bank’s general director of market operations.

The nation’s reserves, which rose $4.9 billion in the first four weeks of 2012 to a record $147.4 billion, have gained almost 30 percent since the end of 2010. A majority of the jump, including $4 billion this year, is the result of dollars coming in from state-owned oil company Petroleos Mexicanos, Duclaud said.

“My guess would be that reserves are probably going to continue to increase,” he said in a phone interview today from Mexico City. He declined to speculate on whether the amount coming from Pemex would increase from 2011.

Pemex was responsible for $19.5 billion of the $28.9 billion increase in reserves in 2011, he said today in a telephone interview.

“The rates at which the government finances itself in pesos and in U.S. dollars are obviously going to take into consideration the amount of reserves that we hold,” Duclaud said.

The yields on Mexican government dollar bonds due in 2020 have fallen 124 basis points, or 1.24 percentage point, to 3.16 percent, according to data compiled by Bloomberg. Yields on Mexico’s peso-denominated bonds due in 2024 dropped 139 basis points, or 1.39 percentage point, to 6.18 percent, according to data compiled by Bloomberg.

--Editors: Jonathan Roeder,

Benjamin Bain in Mexico City at bbain2@bloomberg.net; Jose Enrique Arrioja in Mexico City at jarrioja@bloomberg.net;

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net


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