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Weekly Roundups

Mexico Prepares for Cryptocurrencies; Eschews LIBOR

Thu, 10/14/2021 - 17:13

This week, cryptocurrencies remain in the spotlight in Mexico and around the world with the leader of the Mexican Stock Exchange (BMV) announcing plans that would allow Mexicans to invest in non-fungible tokens. Meanwhile, Banxico followed the steps of other international entities as it seeks to eliminate the increasingly controversial London Interbank Offered Rates (LIBOR).

In international news, multinational enterprises (MNEs) are set to taxed a 15 percent rate by 2023, said the OECD.

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Mexican Stock Exchange Seeks to Include Cryptocurrencies

José-Oriol Bosch, General Director of BMV, announced during the National Week of Financial Education (SNEF) that the organization was seeking the necessary authorizations to list cryptocurrencies. This decision follows the demand from Mexican investors interested in these alternatives.

Banxico Ready to Eliminate LIBOR Rates

Banxico announced the transition from LIBOR (London Interbank Offered Rate) to the new established FSB (Financial Stability Council) and the IOSCO (International Organization of Securities Commissions). With this measure, Banxico seeks to comply with new regulations to help with the global financial stability as LIBOR rates are losing creditability around the world.

MNEs Will be Subject to 15 Percent Tax Rate in 2023

MNEs will see a 15 percent tax rate in 2023, stated the OECD. “The landmark deal, agreed by 136 countries and jurisdictions representing more than 90 percent of global GDP, will also reallocate more than US$125 billion in profits from around 100 of the world’s largest and most profitable MNEs to countries worldwide, ensuring that these firms pay a fair share of tax wherever they operate and generate profits.”

Deputies Set Up an Energy Commission to Discuss Reform

Congress will set up an Energy Commission to analyze the controversial electric reform, which aims to grant state company CFE 56 percent of the market and give the state exclusive right to the country’s lithium reserves. The Energy Commission will analyze the impact of the reform’s planned amendments of Art. 25, 27 and 28 of the Constitution in energy matters.

Strengthening Mexico’s Formal Labor Market

Incentivized by greater support from the federal government, the domestic market has seen as of September 2021 an estimated 2.7 million employees migrate from outsourcing to employment, said Héctor Marquez Pitol, Human Capital Commission President of COPARMEX and President of the Mexican Association of Human Capital Companies (AMECH). From November 2020 to September 2021, subcontracting positions also contracted by 9,000 as result of the regulatory change.