Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Mexico Peso Advances to Six-Week High on Energy Overhaul Bill

Dec. 9 (Bloomberg) -- Mexico’s peso rose to a six-week high after a joint bill presented by senators from the nation’s two biggest political parties went further to open up the nation’s energy industry than an earlier government plan.

The currency gained 0.4 percent to 12.8768 per U.S. dollar at 1:17 p.m. in Mexico City, the strongest level on a closing basis since Oct. 28. The advance was the biggest among six major dollar Latin American tenders tracked by Bloomberg after Brazil’s real.

Senators began debating in committees a proposal that would allow output-sharing contracts and licenses for private oil producers in Mexico. While President Enrique Pena Nieto’s original bill to break Mexico’s 75-year-old oil monopoly presented in August also called for amending the constitution, it was more limited than the plan published over the weekend by senators from the ruling Institutional Revolutionary Party and the opposition National Action Party.

“It’s positive for the peso,” Ramon Cordova, a trader at Banco Base SA, said in a telephone interview from San Pedro Garza Garcia, Mexico. “It’s a kind of euphoria because the economy has been flat in the past year.”

The government estimates an energy overhaul would lift economic growth by 1 percentage point by 2018 and reverse declines in oil production. The Finance Ministry projects Latin America’s second-biggest economy will expand by 1.3 percent this year, compared with 3.9 percent in 2012.

Mexico’s national statistics agency said that the annual inflation rate rose to 3.62 percent in November, the first acceleration in seven months. The median forecast of 18 analysts surveyed by Bloomberg was 3.60 percent.

Yields on peso bonds maturing in 2024 were little changed at 6.3 percent today, according to data compiled by Bloomberg.

Mexico sold 8 billion pesos ($621 million) in fixed-rate government bonds maturing in December 2023 at a yield of 6.33 percent, according to results posted on the central bank’s website. The government also sold 7 billion pesos in notes maturing in one month, 10.5 billion pesos in bills due in three months, 10.5 billion pesos in six-month Cetes and 10.5 billion pesos in one-year securities.

To contact the reporter on this story: Ben Bain in Mexico City at bbain2@bloomberg.net

To contact the editor responsible for this story: Brendan Walsh at bwalsh8@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.