Rate hikes are coming… in Latin America

September 17, 2015

Federal Reserve Board Chair Janet Yellen prepares to testify before a House Financial Services committee hearing on Capitol Hill at in Washington

Latin American central banks are watching today’s Federal Reserve meeting very closely. Some are ready to raise their own interest rates, even if Yellen does not pull the trigger now.

Commodity sell-off adds pressure on unpopular Latin American leaders

July 8, 2015

Brazil's President Dilma Rousseff (C) and Mexico's President Enrique Pena Nieto (2nd R) surrounded by security arrive for the family photo of the VII Summit of the Americas in Panama City

Brazil’s President Dilma Rousseff is fighting for political survival less than a year after being re-elected. Several reasons have been pointed exhaustively to explain how things got so bad in such a short period of time: chief among them are the burgeoning corruption scandal at state-run Petrobras and stubbornly high inflation, out of sync with the rest of the world.

Low-inflation wave reaches Mexico

January 22, 2015

A Mexican soccer fan watches a large screen broadcasting the 2014 World Cup soccer match between Mexico and Cameroon, in downtown Monterrey

Just as ECB President Mario Draghi announced a massive bond-buying program to revive Europe’s economy and fend off deflation fears, news of shockingly low inflation popped up elsewhere in the globe: consumer prices in Mexico dropped 0.19 percent in early January, far below all 19 forecasts in a Reuters poll.

from Global Investing:

Watanabes shop for Brazilian real, Mexican peso

December 19, 2013

Are Mr and Mrs Watanabe preparing to return to emerging markets in a big way?

Mom and pop Japanese investors, collectively been dubbed the Watanabes, last month snapped up a large volume of uridashi bonds (bonds in foreign currencies marketed to small-time Japanese investors),  and sales of Brazilian real uridashi rose last month to the highest since July 2010, Barclays analysts say, citing official data.

For workers, the long run has arrived in Latin America

August 19, 2013

The outlook for emerging market economies over the next decade looks more challenging as long-term interest rates start to bottom out in the United States. Here is another complicating factor: ageing populations.

from Global Investing:

Show us the (Japanese) money

April 30, 2013

Where is the Japanese money? Mostly it has been heading back to home shores as we wrote here yesterday.

Losing the gold medal in football – and economics

August 14, 2012

Noe Torres and Jean Luis Arce contributed to this post. Blog updated Sept 5 to add Q2 GDP data for Brazil and Mexico.

Monetary policy as a skimpy spare tire

April 23, 2012

Central bankers have said repeatedly since the start of the global financial crisis that monetary policy can only do so much to heal a broken economy. Agustín Carstens, president of Mexico’s central bank, chose an interesting analogy at an IMF event this weekend to describe the adjustment needed in countries with very high debt levels:

Carstens says Mexican peso undervalued

September 24, 2011

Mexico Central Bank Governor Agustin Carstens spoke to Reuters Insider on the sidelines of this year’s IMF/G20 meetings. He said the peso, which like many other emerging market currencies has taken a drubbing with the dollar’s recent rally, is undervalued. But unlike in Brazil, where an even more volatile exchange rate has prompted the monetary authorities to step in, Carstens said Mexico does not see the need to intervene.

Spain to vote for Carstens at IMF, but heart not in it

May 31, 2011

Carstens and Lagarde in earlier days

Mexico has won Spain’s vote in the leadership contest for the International Monetary Fund. Or rather, it appears Mexico is effectively telling Spain how it will vote. Of course, Spain’s problem is that it doesn’t really have a vote.