Bank of Mexico

About Bank of Mexico

Founded in 1925 under President Plutarco Elias Calles. The Bank of Mexico issued the peso and managed monetary policy. For decades the bank was subordinate to the government, leading to periodic currency crises. The 1994 Tequila Crisis, when the peso was devalued, led to a 50 billion US bailout. The Bank gained independence in 1993, but political pressure continued. Governor Guillermo Ortiz steered Mexico through the 1995 and 2008 crises. Under Governor Agustin Carstens from 2010 to 2017, Mexico maintained conservative monetary policy. Carstens later headed the Bank for International Settlements. The Bank of Mexico targets 3 percent inflation.