Mexico spends three years with foreign capital inflow

In 2024, despite periods of high uncertainty and volatility, foreign investors bought positions worth 41,143 million pesos in bonds backed by the Mexican government, making the country record three consecutive years of foreign capital inflows, official data reveal. .

According to the Bank of Mexico (BdeM), at the end of the last week of 2024, Mexican government bonds in the hands of foreigners stood at a level of one trillion 830 thousand 77 million pesos, an increase of 2.3 percent compared to to the trillion 788 thousand 933 million pesos reported at the end of 2023.

Last year, the lowest income was recorded for the purchase of securities by foreign residents, since according to BdeM data, in 2023 it totaled 81,956 million and in 2022 an annual increase of 73,529 million pesos was recorded.

This indicator rebounded in the final stretch of 2024, right in December, after a slight departure was reported at the end of the first semester, which worsened in October, before the United States presidential elections, in which the victory of Donald Trump.

According to information from the central bank, at the end of November an amount of one trillion 762 thousand 568 million pesos was recorded in the hands of foreigners, a drop of 10 thousand 414 million pesos compared to the balance in October.

Just in the tenth month of the year, the largest outflow of foreign capital was recorded, with 71,583 million pesos, according to analysts as a result of the imminent victory of Trump, who since then had already threatened to impose tariffs of 25 percent or more on Mexican imports if he becomes president of the United States.

Behind these decreases, Intercam analysts pointed out, was also the fact that at that time of the year there was uncertainty in Mexico’s monetary policy, given that the BdeM cut its reference rate while the United States Federal Reserve did not do so. to which was added the instability shown by the Mexican peso against the dollar.

However, Mexico managed to close the year positively thanks to the fact that it has financial stability, with country risk levels at a minimum for several months and a reference rate that continues to remain several points higher compared to that of the United States, which increases the appetite of investors around the world.

Boom in Cetes

The area where foreigners have the greatest investments is in M ​​Bonds, instruments that closed the year with positions of one trillion 423 thousand 949 million pesos, a growth of 1.6 percent.

However, the favorite instrument this year in Mexico were the Federation Treasury Certificates, Cetes, which registered a strong increase of 12.1 percent, going from 199 thousand 645 million pesos in 2023 to 223 thousand 852 million pesos in 2024. The above, as a result of the fact that for a good part of the year they gave a historical performance above 11 percent.