Circular 19/2014 — Modifies Circular 47/2008

"2014, Year of Octavio Paz" CIRCULAR 19/2014 Mexico, D.F., December 8, 2014 TO CREDIT INSTITUTIONS: SUBJECT: MODIFICATIONS TO CIRCULAR 47/2008 (AUCTIONS FOR THE SALE OF US DOLLARS)

The Bank of Mexico, in compliance with the agreement of the Exchange Commission adopted on December 8, 2014, pursuant to which the Bank of Mexico, from December 9, 2014, and until further notice, will offer, if necessary, US dollars in order to provide liquidity to the foreign exchange market, as well as to promote the sound development of the financial system, requires reactivating the auction mechanism provided for in Circular 47/2008, which was suspended by agreement of the Exchange Commission of April 8, 2013.

Therefore, based on Articles 28, paragraphs sixth and seventh, of the Political Constitution of the United Mexican States; Articles 7, fraction X, 8, 14, and 24 of the Bank of Mexico Law; Article 22 of the Law for Transparency and Order of Financial Services; Articles 8, paragraphs fourth and seventh, 10, first paragraph, 12, first paragraph, in relation to Article 19 Bis, fraction V, and 14 Bis, in relation to Article 17, fraction I, of the Internal Regulations of the Bank of Mexico, which grant it the authority to issue provisions through the General Directorate of Central Bank Operations and the General Legal Directorate, respectively; as well as Article Second, fractions VI and X, of the Agreement on the Affiliation of the Administrative Units of the Bank of Mexico, it has resolved to modify numeral 3 of the "Auctions for the Sale of US Dollars" provided for in Circular 47/2008, to read as follows:

"3. BIDS The bids shall have a minimum price equivalent to the result of multiplying: i) the exchange rate that the Bank of Mexico publishes in the Official Journal of the Federation on the business day immediately preceding the day of the auction, in accordance with what is established in Article 171 of Circular 3/2012 issued by the Bank of Mexico, by ii) the factor determined by the Exchange Commission and made known by the Bank of Mexico in the calls for the auctions in question.

When the auction or auctions held on the immediately preceding banking day have resulted in sales of dollars by the Bank of Mexico, the minimum price of the bids shall be the result of multiplying the factor indicated in the preceding paragraph by the weighted average price of the sales carried out in the auction or auctions of said immediately preceding banking day."

TRANSITORY SINGLE. This circular shall enter into force on December 9, 2014.