Cash Is Flowing South Again

During Mexico's devaluation crisis last March, top aides to Finance Secretary Guillermo Ortiz assembled for an urgent planning session. The U.S. Treasury had just approved its part of a $50 billion worldwide effort to help Mexico refinance $29 billion in tesobonos--short-term, dollar-denominated T-bills--that were putting the country into a severe squeeze. Would that be enough to persuade investors not to blackball Mexico?

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