Banxico governor sees no contagion in Mexico from U.S. banking crisis

By and
Mexico's Central Bank Governor Victoria Rodriguez Ceja speaks during an interview with Reuters
Mexico's Central Bank Governor Victoria Rodriguez Ceja poses for a picture during an interview with Reuters, Merida, Mexico, March 17, 2023. REUTERS/Lorenzo Hernandez

MERIDA, Mexico, March 17 (Reuters) - The Bank of Mexico's Governor Victoria Rodriguez said on Friday the Mexican banking system is solid, vowing to remain vigilant but emphasizing there was no current reason for authorities to intervene.

Rodriguez, a former deputy finance minister, was asked about possible contagion from the collapse of U.S. lenders Silicon Valley Bank and Signature Bank and market turmoil that ensnared Credit Suisse Group AG (CSGN.S).

The failed U.S. banks were regional lenders and have no systemic impact, Rodriguez told Reuters in an interview on the sidelines of Mexico's annual banking convention in the southern city of Merida.

She said, "The relationship between them and the Mexican system is practically non-existent... We do not see a contagion or banks that are in a similar situation in our country."

Asked about the latest inflation data in Mexico and what that could mean for interest rates, Rodriguez noted February inflation data was good news, underscoring that upcoming data t will need to be considered before the bank's next monetary policy decision.

"There is still relevant information that is going to emerge and we will be analyzing it," said Rodriguez.

The rise in Mexico's core consumer prices slowed by more than expected to 8.29% in the year to February, data from statistics agency INEGI showed last week, providing some relief as Latin America's second-largest economy grapples with high inflation and interest rates.

Reporting by Valentine Hilaire and Noe Torres; Editing by Anthony Esposito and Cynthia Osterman

Our Standards: The Thomson Reuters Trust Principles.

Thomson Reuters

Valentine, a French-Panamanian who majored in journalism and philosophy, joined Reuters in December 2021 after spending eight years in Spain. She studied at the University of Navarra and after graduation held different roles at Spanish news outlets 'El Español', 'El Confidencial', and 'La Información'. Valentine has helped boost the team's win rate, broke news on high-profile developments, and collaborated with the Spanish service and polling teams. She spends her free time producing podcasts, playing violin, trying to learn Mandarin, and searching for the best cafes in town.