Home  |  Board of Governors  |  Disclaimer  |  Español
Interest rates SWAP auctions

On October 27, 2008, Banco de México announced a series of measures aimed at improving the functioning of domestic financial markets. These measures included an interest rate swap carried out with credit institutions for up to MXN 50,000 million.

These types of operations enable participants to modify their risk structure. For the operations carried out in November, the measure was aimed at reducing the duration of credit institutions’ assets so that they could operate in a market with higher volatility and rising interest rates. The alternative for credit institutions could have involved the selling off of their long-term bonds. However, this would have worsened the already negative conditions in local markets.

Banco de México carried out 5 auctions for the receipt of a fixed interest rate instrument for a 10-year term paying in exchange the 28-day TIIE (see results).