The Bank of Mexico, abbreviated BdeM or Banxico, is Mexico's central bank, monetary authority and lender of last resort. The Bank of Mexico is autonomous in exercising its functions, and its main objective is to achieve stability in the purchasing power of the national currency.
Background
Plans for a central bank of Mexico began as early as the Mexican Empire of Emperor Agustín de Iturbide with his idea of a Gran Banco del Imperio Mexicano (Grand Bank of the Mexican Empire).[4] This idea was never pursued, instead, credit was generally issued by religious orders or trading guilds.[5] In 1827, Mexico defaulted on a loan from British lenders which made it difficult to find foreign capital and it was forced to rely on local lenders as it had no national bank to lend to it. Instead the government was forced to rely on domestic lenders known as agiotistas (speculators) who specialized in short-term, high-interest loans.[6]
The first formal bank organized by the government was the Banco de Avío which was formed in 1830 during the presidency of Anastasio Bustamante under the direction of the Minister of Interior and Foreign Affairs, Lucas Alamán. The primary purpose of the bank was to stimulate the manufacturing and textile industries. Its success was confined mainly to the latter, but due to ongoing political and military crises the bank was eventually closed in 1842 by President Antonio López de Santa Anna.[6]
The Mexican government had decreed the establishment of a national bank in 1837, which similarly had to close in December, 1841.
Private banking
The first major private bank [6] in Mexico was opened under the period of the Second Mexican Empire in 1864 when the Banco de Londres, México y Sud America (Bank of London, Mexico and South America) opened in Mexico City.[5]
In the 1870s, the Banco de Santa Eulalia opened in Chihuahua and the Monte de Piedad, which had functioned as a pawnshop since 1775, expanded its services into banking. Both banks issued their own bank notes and many more banks followed suit in the next decade, including the Banco Nacional Mexicano (Mexican National Bank) in 1882, opened by the administration of President Manuel González.[6][7]
In 1884, the Banco Nacional Mexicano soon merged with Banco Mercantil Mexicano (Mexican Mercantile Bank) to form the Banco Nacional de México (National Bank of Mexico) which issued notes and was the primary lender to the government. The same year government issued a commercial code that gave it control of the banking sector, including the responsibility of chartering banks and establishing minimum levels of capital.
Foundation
The current constitution of Mexico was signed in 1917. Article 28 of that constitution stipulated that all paper money would be issued by a single bank controlled by the government.[5] But it was not until the end of 1924 that the Ley General de Instituciones de Crédito (General Law of Credit Institutions) was passed which was the legal antecedent for the Banco de México.[8] The law prevented banks from owning stock in other banks and eliminated the stock exemption for banks. Most importantly, the law called for the creation of a central bank.[6]
The Banco de México was created on August 25, 1925, under the direction of Minister of Finance Alberto J. Pani with an official ceremony given on September 1, 1925.[9] It was given exclusive authority to mint coins and print banknotes, a sharp departure from policies of the past. The bank was also given responsibility over exchange rates, interest rates, and monetary regulation. Initially, retail banks even had the option not to partner with Banco de México.
Directors general (1925–1994) and governors (since 1994)
On 15 December 2009, Agustín Carstens was confirmed by the Senate as the new Governor of the Bank of Mexico with 81 votes in favor and 19 votes against. He assumed office on 1 January 2010.[10]
- Alberto Mascareñas Navarro (1925–1932)
- Agustín Rodríguez Cotera (1932–1935)
- Gonzalo Robles Fernández (1935)
- Luis Montes de Oca (1935–1940)
- Eduardo Villaseñor Ángeles (1940–1946)
- Carlos Novoa Rouvignac (1946–1952)
- Rodrigo Gómez Gómez (1952–1970)
- Ernesto Fernández Hurtado (1970–1976)
- Gustavo Romero Kolbeck (1976–1982)
- Carlos Tello Macías (1982)
- Miguel Mancera Aguayo (1982–1997)
See also
- Economy of Mexico
- Economic history of Mexico
- List of central banks
- Mexican peso
Sources
External links
References
- Reservas internacionales rompen histórico y llegan a 225,427 millones de dólares El Economista, 2024^
- Brendan O'Boyle. Mexico central bank cuts interest rate but flags trade tensions, weak economy Reuters, 2025-05-15, retrieved 2025-06-26^
- [zoominfo.com/c/banco-de-méxico/372775461 Banco de Mexico]^