The remnant of operation that Banxico decided to deliver to the Federal Government is symbolic and signs its autonomy, considered the Banamex Financial Group.
The Central Bank reported yesterday that it had a remnant of 17,995 million pesos of its financial year 2024, amount that by law must deliver to the government before the end of April. It is the first time that the Central Bank reports a surplus resource since 2016.
Banamex indicated in a report that the figure is equivalent to 0.1% of the GDP of 2024, and was below its expectation that it would represent 0.3% of the GDP last year (110,000 MDP).
Lee: Banxico reports remaining 17,995 MDP that will deliver to the government
The Financial Group explained that the remnant reported by Banxico reflected a financial result for the fourth quarter less favorable than the expected one, since the Central Bank allocated a proportion greater than that the firm had anticipated for the constitution of reserves.
“The privilege of this constitution of reserves to a greater extent that previous years and only deliver a symbolic amount as remnant, implies a greater attachment to the Banxico law which we consider an additional signal of the autonomy of said central institute,” said the area of Banamex economic analysis.
He explained that Banxico delivered 18% of the surplus available after amortizing its losses, proportion below the average of other years, of 40%, and the lowest of the years in which it has delivered remnants to the government.
He recalled that in recent years Banxico has made decisions that reflect autonomy with respect to the Executive to pressures of this power.
“Among them are opposing law initiatives, such as the one that sought to force the Bank of Mexico to acquire the dollars in cash that some financial institutions have difficulty changing in the United States, particularly benefiting remittance receptor banks and other payments in cash, but attempting against autonomy and against the quality of international reserves,” he exemplified.
He added that the Federal Law on Budget and Fiscal Responsibility states that, of the total revenue of Banxico operation, at least 70% must be used for the amortization of the public debt or the reduction of the amount of financing necessary to cover the budget deficit.
He indicated that the remaining 30% should be used to strengthen the budgetary income stabilization or the increase in assets that strengthen the government’s financial position.
He considered that from the remainder of Banxico by 17,995 MDP, the government should allocate at least 12,600 MDP to reduce the debt and the rest to strengthen stabilization funds.
He estimated for this year a broad public deficit of 4.3%, above 4% that had previously calculated to foresee a major remnant.
He pointed out that this improvement in public finances does not imply changes to current expenditure or physical investment, so it does not modify its null forecast of GDP growth in 2025.
Retrieved this morning by the remnant, President Claudia Sheinbaum declared that she was waiting for a larger amount.
“We thought it was more. Just today the Secretary of the Treasury will inform me how the calculation was. But we are going to inform people how we are going to use the resource,” he said at his morning conference.
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