Circular 10/2003 — Monetary Regulation Deposits

(Provision repealed by Circular 30/2008 published on July 9, 2008) CIRCULAR 10/2003 Mexico, D.F., March 28, 2003. TO THE CREDIT INSTITUTIONS IN THE COUNTRY: SUBJECT: MONETARY REGULATION DEPOSITS. The Bank of Mexico, based on the provisions of articles 14, 24, and 28 of its Law and with the objective of regulating liquidity surpluses in the money market, has resolved that credit institutions constitute a monetary regulation deposit at this Central Bank with the characteristics indicated below:

1. Amount The total amount of the sum of the deposits of all credit institutions shall be the amount of $30,000,000,000.00 (THIRTY BILLION PESOS 00/100 M.N.). From this sum, $10,000,000,000.00 (TEN BILLION PESOS 00/100 M.N.) must be deposited daily on April 7, 8, and 9, 2003.

The amount that each institution must deposit on the aforementioned days will be the result obtained by distributing the specified amounts pro rata based on the respective traditional national currency capture of the credit institutions as of December 31, 2002, with data registered as of March 31, 2003. For this purpose, traditional capture shall be understood as defined according to the accounting criteria of the National Banking and Securities Commission.

The document containing the result of this pro rata distribution will be sent to each institution by electronic means no later than April 1, 2003, and the original must be picked up no later than April 2 of the same year, at our Financial System Information Directorate located at Avenida Cinco de Mayo Number 6, sixth floor, Condesa building, Centro Neighborhood, Mexico City, D.F., Postal Code 06059, with telephone number 52-27-87-40.

The constitution of these monetary regulation deposits will be carried out through charges to the Unique Account that the Bank of Mexico maintains for these institutions, for the amounts corresponding to each institution according to the document referred to in the previous paragraph. Such charges will be made in accordance with the applicable provisions, upon the opening of the Bank of Mexico Account Holder Service System (SIAC-BANXICO), on the dates indicated in the first paragraph of this section.

2. Deposit Term The deposits constituted under the terms of this Circular-Telefax will have an indefinite duration. The Bank of Mexico will inform in advance of the date and procedure for the withdrawal of the balance of said deposits.

3. Yields of the Deposits Interest on the deposits will begin to accrue on April 7, 2003. Regarding the first interest period, interest will be paid for three days for resources deposited on April 7, for two days for amounts corresponding to April 8, and for one day for amounts deposited on April 9. The respective interest will be paid to these institutions by credit to the Unique Account maintained by the Central Institute on April 10, 2003. Subsequent interest periods will be 28 days. In the case of banking holidays, this term will be adjusted to the nearest preceding or following banking business day, giving preference to the preceding day in case of equality.

For each interest period, the rate resulting from the following formula, expressed in percent with rounding to two decimal places, will be applied:

[∏(1 + ri 360) N i=1] − 1] x 360 N

Where: N = Number of natural days elapsed between the date of constitution of the deposit or the last interest payment and the payment date of the interest period. I = Refers to each of the days from the date of constitution of the deposit or the last interest payment up to the day immediately preceding the payment date of the interest period, taking values from 1 to N.

Operator meaning to perform the multiplication of the factors within parentheses. ri = Rate at which credit institutions and brokerage houses carry out day-to-day banking title buy-sell and repurchase operations with one banking business day maturity, known in the market as the "Weighted Banking Funding Rate," calculated and made known on day i by the Bank of Mexico, through its electronic page www.banxico.org.mx, in terms of the publication in the Official Gazette of the Federation dated July 31, 2000, or through any other authorized electronic, computing, or telecommunications medium for this purpose by the Bank of Mexico itself. In the latter case, the medium through which this rate will be disseminated will be informed promptly. In the case of a holiday, the rate made known on the immediately preceding banking business day will be used.

In the event that this rate cannot be determined or ceases to be made known, the Bank of Mexico will request in writing from two "brokerage houses" selected by the Money Market Committee of the Association of Bankers of Mexico, A.C., the average of the day-to-day banking title buy-sell and repurchase operations. The Bank of Mexico will calculate the average of the two rates obtained for its determination and will make the result known in the manner and medium mentioned, as a substitute rate for the aforementioned one.

The respective interest will be calculated by multiplying the daily average balance of the deposit in each interest period by the rate calculated in accordance with this section, divided by three hundred sixty, and multiplying the result obtained by the number of days effectively elapsed during the interest period in question.

Such interest will be credited to the Unique Account in national currency that the Bank of Mexico maintains for credit institutions.

Sincerely, BANK OF MEXICO