Mexico does not maintain foreign-exchange (forex) restrictions. Capital moves freely across the country's borders. Any forex policy changes require approval by the Exchange Rate Commission, composed of officials from the Ministry of Finance and Public Credit (Secretaria de Hacienda y Credito Publico -- SHCP) and Banco de Mexico.
Money-laundering regulations -- enacted since 1996 -- have improved scrutiny of large transactions. Rules require financial institutions (banks, credit unions, brokerage houses, exchange houses and "nonbank" banks) to report "suspicious" transactions to authorities within 20 working days. On a quarterly basis, financial institutions must also submit reports on transactions of monetary instruments with a value equal to or exceeding US$10,000. Nonetheless, money-laundering still remains a problem in Mexico, owing to lax enforcement and a lack of resources and co-ordination among the government bodies responsible for investigating and prosecuting money-laundering cases.
Source: Economist Intelligence Unit
Showing posts with label government support. Show all posts
Showing posts with label government support. Show all posts
Thursday, June 9, 2011
Lesson in Financial Regulation in Mexico: Part 2
Continued from Lesson in Financial Regulation in Mexico: Part 1.
Since 2007, the government has been gradually easing restrictions on pension fund investments. In February 2010 pension funds were allowed to invest in private equity. Most recently, in March 2011 investment was allowed for the first time in select foreign currencies (US dollars, euros and Japanese yen only).
In March 2011 the Mexican stockmarket (Bolsa Valores Mexicana -- BMV) formed a derivatives order routing partnership with CME Group (the US-based entity created from the merger of the Chicago Mercantile Exchange and the Chicago Board Options Exchange in July 2007). The BMV's derivative products are offered through its subsidiary, the Mexican Derivatives Exchange (Mercado Mexicano de Derivados -- MexDer). The first part of the arrangement, launched in April 2011, granted Mexican investors direct access to CME Group's products through MexDer. The second part, expected to go live in the third quarter of 2011, will allow international investors direct access to MexDer derivatives through CME Group.
Source: Economist Intelligence Unit
Since 2007, the government has been gradually easing restrictions on pension fund investments. In February 2010 pension funds were allowed to invest in private equity. Most recently, in March 2011 investment was allowed for the first time in select foreign currencies (US dollars, euros and Japanese yen only).
In March 2011 the Mexican stockmarket (Bolsa Valores Mexicana -- BMV) formed a derivatives order routing partnership with CME Group (the US-based entity created from the merger of the Chicago Mercantile Exchange and the Chicago Board Options Exchange in July 2007). The BMV's derivative products are offered through its subsidiary, the Mexican Derivatives Exchange (Mercado Mexicano de Derivados -- MexDer). The first part of the arrangement, launched in April 2011, granted Mexican investors direct access to CME Group's products through MexDer. The second part, expected to go live in the third quarter of 2011, will allow international investors direct access to MexDer derivatives through CME Group.
Source: Economist Intelligence Unit
Wednesday, June 8, 2011
Mexican Makeover: The New Film Industry in Mexico
From Hollywood Reporter: Pablo Jose Barroso, a businessman turned producer, is literally making history with the Mexican period piece Cristiada. The movie features Andy Garcia, Eva Longoria, Peter O'Toole, Ruben Blades and Catalina Sandino Moreno.
The Hollywood Reporter states: "The film will not only go down in history as one of the costliest pictures ever produced in Mexico, but also as the first homegrown project to tap into a newly created audiovisual fund for large-scale productions. Spearheaded by state-run trade and investment agency ProMexico and film-financing body Imcine, the so-called ProAv program enables filmmakers to receive tax rebates of 7.5 percent on audiovisual projects that exceed 70 million pesos (about $6 million). The incentive comes at a time when the Mexican film sector is enjoying one of its most productive eras in decades, churning out roughly 70 features a year, thanks in part to strong government support like ProAv."
The Hollywood Reporter states: "The film will not only go down in history as one of the costliest pictures ever produced in Mexico, but also as the first homegrown project to tap into a newly created audiovisual fund for large-scale productions. Spearheaded by state-run trade and investment agency ProMexico and film-financing body Imcine, the so-called ProAv program enables filmmakers to receive tax rebates of 7.5 percent on audiovisual projects that exceed 70 million pesos (about $6 million). The incentive comes at a time when the Mexican film sector is enjoying one of its most productive eras in decades, churning out roughly 70 features a year, thanks in part to strong government support like ProAv."
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