Circular 32/2008 — Auctions for the Sale of United States Dollars

2008, Year of Physical Education and Sports

CIRCULAR 32/2008

Mexico, D.F. on July 29, 2008.

TO THE CREDIT INSTITUTIONS OF THE COUNTRY:

SUBJECT: AUCTIONS FOR THE SALE OF UNITED STATES DOLLARS

The Exchange Commission, in a meeting held on July 25, 2008, resolved to suspend, effective August 1 of the current year and until further notice, the scheme for the sale of United States dollars, in order to compensate for the decrease in the balance of international asset reserves caused by the sale of $8,000,000,000.00 (EIGHT BILLION UNITED STATES DOLLARS) that the Bank of Mexico carried out to the Ministry of Finance and Public Credit to cover in advance the foreign exchange operational needs of the Federal Government during the coming months.

Consequently, the Bank of Mexico, based on what is provided in articles 28 of the Political Constitution of the United Mexican States, sixth and seventh paragraphs; 21 and 24 of the Bank of Mexico Law; 22 of the Law for Transparency and Ordering of Financial Services; 8th paragraphs third and sixth; 17 fraction I, as well as 19, fraction IX, which provide for the attribution to issue provisions of the Bank of Mexico through the Directorate of Central Bank Provisions and the Directorate of Operations, respectively, all of the Internal Regulations of the Bank of Mexico, and the Single Agreement on the Affiliation of the Administrative Units of the Bank of Mexico, fractions I and IV, and in order to comply with the resolution mentioned in the previous paragraph, has resolved to render ineffective Circular-Telefax 18/2003 and its modifications, as well as the announcement of the daily sale of foreign exchange for the August-October period made known on July 15.

TRANSITORY
SINGLE.- This Circular shall enter into force on July 31, 2008.

BANK OF MEXICO