Key Mexico Statistics

Dic – Feb 2014

Nuricumbo + Partners

Audit • Finance • Risk • Strategy • Business Development

Country Risk

Mexican Stock Exchange

Securities Market

1

2

3

4

Exchange Rates

Inflation Rate5

Investment Unit (UDI)6

Economic Confidence Indicator (IMCE)7

Outline

International Reserves8

Note: Mexican Pesos per CurrencySource: Mexican Central Bank, www.banxico.org.mx, 2014

€16.80

€17.30

€17.80

€18.30

€18.80

28/02/14€ 18.2590

December January February

31/12/13€18.0079

31/01/13€ 18.1244

$11.00

$11.50

$12.00

$12.50

$13.00

$13.50

28/02/14$11.9432

December January February

31/12/13$12.3168

31/01/13$12.0149

$12.15

$12.65

$13.15

$13.65

$14.15

28/02/14$ 13.2379

December January February

31/12/13$13.0843

31/01/13$13.3769

£20.00

£20.80

£21.60

£22.40

£23.20

28/02/14£22.4783

December January February

31/12/13£21.9648

31/01/13£22.3140

Exchange Rates

The Country Risk indicates the possibilities that an emerging country has to fail on the fulfillment of its obligations over external debt payments, whether for capital or interests. The higher the Country Risk, the higher the possibility to get a “default”.

It is composed of three main sources:

• Sovereign Risk

• Transfer Risk

• Generic Risk

It is measured through the use of the Emerging Markets Bond Index (EMBI) created by J.P. Morgan Chase.

Source: www.economia.com.mx, 2014

December January February0

50

100

150

200

250

156

196

168

Country Risk

Note: Basis points

Country Risk

Source: Mexican Stock Exchange (BMV), http://www.bmv.com.mx/, 2014

The Mexican Stock Exchange (BMV) is a public institution that operates under a concession granted by the Ministry of Finance (SHCP), observing the Mexican Securities Law. Given the world tendencies and legislation changes, the BMV has already started its demutualization process, but up to this date its shareholders are authorized brokerage firms, which own one share each.

Marketable Securities•Capitals Market (Stocks, Fibras)•Capital Development Market (CKDes)

• Debt Market (Government, Short, Medium and Long Term Debt).

December 31st

January 31st

February 28th

36,000

37,000

38,000

39,000

40,000

41,000

42,000

43,000

44,00042,727.09

40,879.75

38,782.89

Price and Market Rates Index (IPC)

Mexican Stock Exchange

Source: Mexican Central Bank, www.banxico.org.mx, 2014

The Mexican Central Bank (Banxico) carries out operations in the securities market in order to regulate the liquidity of Mexico’s financial system.

It also undertakes primary auctions of securities for the government and other public sector entities, and issues regulations on several financial operations of financial intermediaries.

Cetes 28Zero coupon bonds denominated in Mexican Pesos issued by the Mexican Government, in a 28-days period.

December 31st

January 31st

February 28th

3.12%

3.14%

3.16%

3.18%

3.20%

3.16%

3.18%

3.15%

Government Securities Auc-tion’s Monthly Results (Cetes

28-days)

Securities Market

Source: Mexican Central Bank, www.banxico.org.mx, 2014

Inflation can be defined as a continuous and

widespread increase in goods and services

prices.

The Consumer Price Index (CPI) is the

statistical instrument that calculates inflation

by continuously measuring the price

changes of households’ representative

basket of goods and services. December January February0.00%0.50%1.00%1.50%2.00%2.50%3.00%3.50%4.00%4.50%5.00%

3.62%3.97%

4.48%

Yearly Inflation Rates per Month

Inflation Rate

Source: Mexican Central Bank, www.banxico.org.mx and Ministry of Finance, www.sat.gob.mx, 2014

The Investment Unit (Unidad de Inversion,

UDI) is the factor (value) to be applied to the

acquisition of mortgages.

The Mexican Central Bank is the responsible

authority to publish at the Mexico’s Official

Gazette its value in Mexican Pesos for each

day of the month. December

31stJanuary

31stFebruary

28th

5.020000

5.040000

5.060000

5.080000

5.100000

5.120000

5.140000

5.058731

5.100417

5.129269

Investment Unit (UDI)

Investment Unit (UDI)

Source: Public Accountants Mexican Association, IMCP, http://imcp.org.mx/, 2014

The Economic Confidence Indicator, IMCE, is a diffusion indicator which aims to quantify the expectation of the perceived business climate through more than 20,000 registered public accounting to nearly 60 colleges affiliated to Public Accountants Mexican Institute, IMCP.

The index can become one of the key leading indicators to get a better overview of the situation of the Mexican economy.

The indicator is divided into two main components, which presents the current perception in the business climate as well as future perspectives. Its score is measured through a range of 0 to 140 points, being higher values optimistic and lower values pessimistic.

Economic Confidence Indicator (IMCE)

December January February$65

$66

$67

$68

$69

$70

$71

$72 71.43

67.28

68.78

Economic Confidence Indi-cator

Source: Mexican Central Bank, www.banxico.org.mx, 2014

Known as financial assets invested abroad by the Mexican Central Bank that can easily be converted in means of payment.

According to the Mexican Central Bank, the following concepts are considered as International Reserves:

• Foreign banknotes and coins;

• Deposits, securities and stocks payable outside of Mexico;

• Loans by Central Banks payable at no longer than six months;

• The Special Drawing Rights at the International Monetary Fund.

December 31st

January 31st

February 28th

$175,000$175,500$176,000$176,500$177,000$177,500$178,000$178,500$179,000$179,500$180,000

$176,579

$177,179

$179,705

International Reserves (Mil-lion USD)

International Reserves

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