Global Inflationary Pressures Hit MexicoBy Emilio Aristegui | Thu, 12/02/2021 - 12:16
Production bottlenecks and global inflationary pressures continue to worry Banxico’s Board of Governors. On the other hand, Mexico continues creating job opportunities as the country added 288,000 jobs year-to-year in October, according to INEGI.
Ready? This is the week in finance!
The Mexican telecommunications giant, America Móvil (AMX) announced an increase of MX$26 billion (US$1.2 billion) in its buyback program for the period April 2021-April 2022. The following day, AMX announced the sale of its 100 percent interest in TracFone Wireless to the largest mobile prepaid service operator in the US, Verizon. America Móvil received US$3.6 billion in cash, with a US$500 million of customary adjustment for Tracfone’s cash and working capital, and 57.59 million Verizon shares.
The Bank of Mexico’s Board of Governors met to analyze the evolution of inflation in the country and around the world. Even though global economic activity registered an important recovery in 3Q2021, its slow-paced growth and production bottlenecks raise concerns for the Board of Governors. Global inflationary pressures continue to affect Mexico alongside domestic inflation rates and disruptions in production lines.
The National Institute of Statistics and Geography (INEGI) reported that 288,000 jobs were created year-to-year in October. However, major concerns arose as INEGI reports that over 2.3 million people are still actively seeking employment in Mexico during said month. Mexico’s Economically Active Population (EAP) is comprised of 58.7 million people aged 15 and over, an increase of 3.3 million from last year. In the last two months, the country has created 632,000 jobs.
Prices continued to go up and grew by 0.69 percent in the first fortnight of Nov. 2021, their sharpest growth highest since 2017, according to INEGI. Northern states such as Sinaloa, Baja California, Baja California Sur and Chihuahua were affected the most. But southern states such as San Luis Potosi, Chiapas, Michoacan and Yucatan were least affected by the national increase in prices.
“Today, Bitcoin’s most ardent proponent is Michael Saylor, the Founder of Micro Strategies. Saylor claims that Bitcoin will become a widely adopted currency going forward. The problem is that currencies need to be stable to be usable – and Bitcoin is over 10,000 times more volatile than any western currency,” James Rasteh, Founder, Coast Capital Management, explained to MBN. Rasteh also stated that bitcoin prophets insisted that the cryptocurrency would have become a currency by 2020.