Circular 5/2015 — Modifies Circular 6/2009

2015, Year of the Generalissimo José María Morelos y Pavón

CIRCULAR 5/2015

Mexico, D.F., March 11, 2015.

TO CREDIT INSTITUTIONS:

SUBJECT: MODIFICATIONS TO CIRCULAR 6/2009 (AUCTIONS FOR THE SALE OF UNITED STATES DOLLARS WITHOUT MINIMUM PRICE)

The Bank of Mexico, with the purpose of continuing the promotion of the sound development of the financial system, and in compliance with the agreement adopted by the Exchange Commission to implement an additional mechanism for auctions of United States dollars, in order to ensure orderly functioning in the foreign exchange market, will carry out these auctions daily without a minimum price and for an amount determined based on the expected accumulation of international reserves for a specific period.

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 Ordering of Financial Services; Articles 8, paragraphs fourth and seventh, 10, paragraph first, 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 Legal Directorate and the National Operations Directorate, respectively; as well as Article Second, fractions VI and X, of the Agreement on the Affiliation of Administrative Units of the Bank of Mexico, it has resolved to modify numerals 1, 4, and 5 of the terms for “Auctions for the Sale of United States Dollars Without Minimum Price” provided for in Circular 6/2009, to read as follows:

1. …

“The Bank of Mexico will auction United States dollars (dollars) every banking business day. The notices will be made known through the Bank of Mexico Account Holder Attention System (SIAC-BANXICO) and will contain the amount of dollars to be auctioned, the type of auction to be held, the schedules for the celebration of the auction and for the submission of bids, as well as the other characteristics of the auction in question.”

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“The assigned dollars will be deposited into the account that the institution has previously indicated to the Sub-Management of Operations Management of the International Reserves of the Bank of Mexico, on the second immediate banking business day following the date of assignment.”

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5. …

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“In the event that not all of the offered dollars are assigned in an auction, the Bank of Mexico may call for a new auction to place said remaining amount. The schedules and type of auction will be made known by the Bank of Mexico in the respective notice.”

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TRANSITIONAL PROVISION

SINGLE. This circular will enter into force on March 11, 2015.