Key Mexico Statistics

October – December 2015

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, 2015

€16.60€17.10€17.60€18.10€18.60€19.10€19.60€20.10

31/12/15€ 18.7873

October November December

30/10/15€ 18.2066

30/11/15€ 17.5376

$11.00$11.50$12.00$12.50$13.00$13.50$14.00

31/12/15$12.4254

October November December

30/10/15$12.6358

30/11/15$12.4517

$15.15$15.65$16.15$16.65$17.15$17.65$18.15

31/12/15$17.2487

October November December

30/10/15$16.5244

30/11/15$16.5856

£22.60£23.40£24.20£25.00£25.80£26.60£27.40

31/12/15£25.5608

October November December

30/10/15£25.3633

30/11/15£24.8884

Exchange Rates

The Country Risk indicates the possibilities of an emerging country failing to fulfill its obligations over external debt payments, whether for capital or interest. The higher the Country Risk, the larger the possibility of 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, 2015

October November December208210212214216218220222224226228

215216

227

Country Risk

Note: Basis points

Country Risk

Source: Mexican Stock Exchange (BMV), http://www.bmv.com.mx/, 2015

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. Its shareholders are authorized brokerage firms, which each own one share. Its broad market indicator is known as “Indice de Precios y Cotizaciones” (IPC).

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

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

October 30th

November 30th

December 31st

42,000

42,500

43,000

43,500

44,000

44,500

45,00044,542.76

43,418.55

42,977.50

Price and Market Rates Index (IPC)

Mexican Stock Exchange

Source: Mexican Central Bank, www.banxico.org.mx, 2015

Mexico’s 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. The instrument due in 28 days is a common reference.

October 30th

November 30th

December 31st

3.02%

3.03%

3.04%

3.05%

3.06%

3.05%

3.03%

3.05%

Government Securities Auc-tion’s Monthly Results (Cetes

28-days)

Securities Market

Source: Mexican Central Bank, www.banxico.org.mx, 2015

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. October November December 2.05%2.10%2.15%2.20%2.25%2.30%2.35%2.40%2.45%2.50%2.55% 2.52%

2.48%

2.21%

Annualized Inflation Rates measured monthly

Inflation Rate

Source: Mexican Central Bank, www.banxico.org.mx and Ministry of Finance, www.sat.gob.mx, 2015

The Investment Unit (Unidad de Inversion,

UDI) is a value unit linked to the overall

movement of prices. It is commonly used in

financial operations or investment

instruments that are required to guarantee a

return above inflation. The Mexican Central

Bank is the responsible authority to publish

its value in Mexican Pesos for each day of the

month. October

30thNovember

30thDecember

31st

5.3000005.3100005.3200005.3300005.3400005.3500005.3600005.3700005.3800005.390000

5.328542

5.360528

5.383771

Investment Unit (UDI)

Investment Unit (UDI)

Source: Public Accountants Mexican Association, IMCP, http://imcp.org.mx/, 2015

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

The indicator is divided into two main components, which presents the current perception in the business climate as well as the perspective in six months. Its score is measured through a range of 0 to 140 points. Higher values represent higher optimism.

Economic Confidence Indicator (IMCE)

October November December $70

$71

$72

$73

$74

$75

$76

$77

$78

72.41

74.22

76.93

Economic Confidence Indi-cator

Source: Mexican Central Bank, www.banxico.org.mx, 2015

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

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

• Foreign bank notes 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.

October 30th

November 30th

December 31st

$169,000$170,000$171,000$172,000$173,000$174,000$175,000$176,000$177,000$178,000

$176,978

$172,236

$176,353

International Reserves (Mil-lion USD)

International Reserves

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