Mexico: Corporate Approaches to Currency & Inflation Risk
Mexico offers deep trade and investment linkages with global partners and a diversified domestic market. That makes long-term contracts — infrastructure concessions, multi-year supply agreements, project finance loans, and energy offtake deals — commercially attractive. At the same time, such contracts are exposed to two related macro risks:Currency risk: fluctuations in the Mexican peso (MXN) versus major invoicing currencies (most commonly the US dollar) change the real value of payments and returns.Inflation risk: persistent changes in the general price level erode fixed-price revenue streams and increase local costs for labor, materials, utilities and taxes.The Bank of Mexico targets low and…







