Mexico Publishes 2022 Economic Package, Recovers Jobs

This week, Mexico announced its 2022 economic package and the restart of high-level economic dialogues with the US. IMSS registers the highest monthly job increase for an August in history. Bitcoin became an official currency in El Salvador and expert contributors shared important financial advice with MBN.

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Bitcoin Becomes Official in El Salvador

El Salvador adopted Bitcoin as an official payment method and currency, setting the stage for numerous cryptocurrency platforms to expand operations in the Latin American country. Pablo Gonzales, Co-founder and Chief Design Officer at Mexican cryptocurrency platform Bitso, to MBN that “This decade will mark a new era for innovation and collaboration with crypto communities around the world.”

However, Moody’s downgraded El Salvador’s investment rating in July mainly because of the Bitcoin law. Jaime Reusche, who is part of Moody’s rating team, announced the main concerns regarding the new law: “Having that risky exchange volatility is what was trying to be avoided when El Salvador adopted the dollar.”

Highest Job Increase for August in History: IMSS

IMSS reported a massive job increase during August, indicating Mexico is on its way to recover the jobs lost in 2020. “Job creation from August this year is of 647,091 positions. During this period, permanent employment increased by 804,519 positions and temporary employment decreased by 157,428 positions.”

The Importance of Financing Customers

Fernando Padilla, CEO of Pretmex, explained in MBN the five most important rules to finance clients: “1. All financing has a cost., 2. Funding always has to be documented., 3. Know the cycle of your business., 4. Never leave the collection of financing in the background., 5. If a customer starts to fall behind, do not fall behind.” These rules are a must for the world of finance, explained Padilla.

Mexico Focused on Recovery in 2022 Economic Package

The Ministry of Finance and Public Credit (SHCP) published the new economic package for 2022, seeking to impulse Mexico’s economic recovery while balancing responsible spending with support for social causes. “The fiscal package is designed to keep the public debt stabilized and to maintain fiscal prudence,” said Rogelio Ramírez de la O, Head of SHCP.

Mexico-US Set to Restart High-Level Economic Dialogue

Both countries jointly declared their plans for high-level economic dialogue in a recent press release: “DEAN (High-Level Economic Dialogue) seeks to advance the strategic economic, social and commercial priorities that are central to promoting regional economic growth, creating jobs, investing in people, and reducing inequalities and poverty in all its dimensions.” The countries seek to work together to continue developing the region.

Cash-Free Futures for Companies as New Technologies Take Over

“The decreasing use of cash in recent years has been a reality in many countries,” wrote Jorge de Lara, Vice President and General Manager for GCS American Express Mexico and Latin America, in MBN. During this period, companies must reinvent themselves, he added: “Hundreds of businesses had to rethink their models overnight, with many being forced to figure out remote ways of conducting transactions.”