ForeXistenZ › Central banks › BANXICO
Banco de México (BANXICO)
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Sets rates for the peso, the most traded currency of Latin America.
How the BANXICO moves the MXN
A central bank sets the interest rate on its currency. Traders compare that rate with the rates of other central banks; the wider the gap, the stronger the pull of money towards the higher-yielding currency. That is why the minutes before a BANXICO decision are among the most volatile of the month for the MXN. Book I and Book II of the ForeXistenZ trilogy show how to prepare for these days — and when to stay out.
Frequently asked
What does the Banco de México do?
Sets rates for the peso, the most traded currency of Latin America.
Where is the Banco de México?
The Banco de México (BANXICO) is in Mexico City, Mexico.
Why do forex traders watch the BANXICO?
Interest rates are the price of a currency. When the BANXICO raises or cuts rates — or only hints at it — money moves into or out of the MXN, and MXN reacts within seconds.
Where are the BANXICO’s decisions published?
Official decisions, statements and the meeting calendar are published on https://www.banxico.org.mx.
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Other central banks
FEDFederal Reserve System
Washington, D.C., United States — Sets US interest rates. Every Fed decision moves the dollar — the currency on one side of almost nine in ten FX trades.
BOCBank of Canada
Ottawa, Canada — Steers the Canadian dollar — the loonie, closely linked to the price of oil.
BCBBanco Central do Brasil
Brasília, Brazil — Guards the real and runs Pix, one of the world’s fastest-growing instant payment systems.
BOGBank of Ghana
Accra, Ghana — Ghana’s central bank — buying domestic gold to strengthen the cedi.
BOEBank of England
London, United Kingdom — The Old Lady of Threadneedle Street — sets UK rates and guards one of the largest gold vaults on Earth.
CBNCentral Bank of Nigeria
Abuja, Nigeria — Manages the naira for Africa’s most populous country.