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News Article

Finance Ministry Presents Platform-Based Investment Alternative

By Karin Dilge | Tue, 08/23/2022 - 12:24

Mexican authorities have established and updated their National Policy of Financial Inclusion by broadening investment alternatives on the Cetesdirecto platform. The Ministry of Finance and Public Credit (SHCP) is incorporating the Bonds to Protect Savings program, which has an expiry period up until seven years and features a return of investment rate that will always stand higher than inflation.

The policy includes a government-backed diagnosis with objectives, strategies and courses of action to boost the inclusion and financial capacities of the population aiming to save money safely.

Currently, the Cetesdirecto platform has around 969,000 investors and is expanding further. The government has taken actions to promote small- and medium-level savers to gain access to the government stock market.

As of this week, users of the platform will be able to access the instructions to buy the Bonds to Protect Saving, also known as BPA182. The bonds are auctioned weekly by the Institute for the Protection of Bank Savings (IPAB).

Mexico’s inflation rate hit 8.15 percent in July 2022, a rise compared with the previous month’s 7.99 percent, reports the National Institute of Statistics and Geography (INEGI). Core inflation increased by 0.62 percent in June, while non-core inflation increased by 1.09 percent. These inflation levels have not been seen since the end of 2000 and could lead the Bank of Mexico (Banxico) to continue to tighten its monetary policy and increase its interest rate by another 75 base points. Considering the inflation rates, investing in the bonds could represent an opportunity. Moreover, the BPA182 bonds have the support of the Mexican government, which makes them a save investment tool.

Until today, investors could only acquire BPA182 through financial intermediaries with access to the stock market and under some restrictions of minimum investment amounts as well as commission payments.

Financial analysts see that many investors are looking to protect their money from the high inflation rates. The accelerated increase of inflation in the country could have severe repercussions, especially among the lower-income population, warns the International Monetary Fund (IMF). According to INEGI’s report, prices are rising once again across the board, leading Mexicans to change their consumer behavior and making bulk sales much more attractive. The Anti-Inflation and Deficiency Package (PACIC), which was designed as a tool to fight inflation, has not met its objective. Despite the resources invested, it has only contained the further advancement of inflation, as previously reported by MBN.

The data used in this article was sourced from:  
Outlet minero, MBN
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Karin Dilge Karin Dilge Journalist and Industry Analyst