Mexican Peso ADV in June 2020 of 61,846; up 53% vs May 2020
Mexico is the second largest economy in Latin America and the 15th largest economy in the world with nominal GDP of $1.2 trillion in 2019. The Mexican economy was originally expected to grow by less than one percent in 2020. However, because of the Covid-19 pandemic, economists now predict the Mexican economy will contract by as much as 8.8% in 2020 with inflation increasing to 3.5% for the remainder of the year. Analysts foresee the Mexican unemployment rate hitting 15.8% in the third quarter of this year. Since February, the Bank of Mexico has acted aggressively by cutting its key policy interest rate by 175 basis points to 5.5% while announcing unprecedented liquidity-boosting measures of nearly $40 billion. Economists expect Mexican interest rates to remain low because of subdued economic activity, weak labor market conditions, and an increase in investor demand for low-risk assets.
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Choose a Block or an EFRP – where you can still privately negotiate your trades, but submit them directly into our clearing systems to free up credit lines and mitigate bilateral exposure – whether you are trading in Brazil or anywhere else in the world.
CME is eliminating the current spot month position limit of 45,000 contracts in MXN futures and options, effective trade date Monday, November 4, 2019 commencing with the December 2019 contract month and beyond.
With the continued success and development of the MXN/USD futures and options markets, active market participants, who have accumulated large positions prior to contract expiration, will now find it easier from an execution and operational standpoint to roll their futures and options positions forward in time prior to the cessation of trading in an expiring MXN future without having to worry about meeting spot month position limits during the last four trading days of a contract expiration.
CME Group offers position-netting and capital and margin efficiencies with cleared OTC (including NDFs) and listed FX:
55 Futures, 24 Options, 26 CSFs and 12 NDFs.
$100B of daily FX volume and the firm liquidity you need to manage FX risk – from rupee to rand.