The Bank of Mexico

The Bank of Mexico is the central bank of Mexico and was founded on the 1st of September, 1925 by the government of Plutarco Elías Calles. Constitutionally, Bank of Mexico is autonomous and its main goal is to provide the country’s economy with a national currency and promote the stability of its purchasing power, thus strengthening the rectory of national development corresponding to the State. It is also in charge of promoting the healthy development of the financial system and a good functioning of payment systems. Its long term goal is to be recognized as one of the best and clearest central banks in the world. Its functions and administration are in the hands of a Governing Board, integrated by five members who are one governor and four sub-governors. These persons are designated by the President of Mexico with the approval of the Chamber of Senators and can only be removed for serious causes; they can’t hold any other employment, except those that are not paid in teaching, scientific, cultural or benefit associations. The people in charge of conducting the central bank can undergo political trial. Article 3 of its Law establishes that the Bank’s functions are: -Regulating the emission and circulation f currency, exchange, intermediation and financial services, as well as payment systems; -Operate with credit institutions as a reserve bank and last instance creditor; -Provide treasury services to the Federal Government and act as its financial agent; -Advise the Federal Government on economic and, particularly, financial issues; -Participate in the International Monetary Fund and other organisms of international financial cooperation that group central banks, and -Operate with the organisms, central banks and other foreign persons exercising authority on financial matters. Its judicial regime is established in article 28 of Mexico’s Political Constitution. Artículo Producido por el Equipo Editorial Explorando México. Copyright Explorando Méxicos, Todos los Derechos Reservados. Foto: Banxico.org