Circular 50/2008 — Modifies Circular 2019/95

2008, Year of Physical Education and Sport

CIRCULAR 50 /2008

Mexico City, October 21, 2008.

TO MULTIPLE BANKING INSTITUTIONS:

SUBJECT: U.S. DOLLAR DEPOSITS

The Bank of Mexico, based on Article 28 of the Political Constitution of the United Mexican States, sixth and seventh paragraphs; Articles 7 (sections VII and X), 8, 14, and 24 of the Bank of Mexico Law; Article 22 of the Law for Transparency and Order of Financial Services; Article 8 (third and sixth paragraphs), Article 12 in relation to Article 19 (section IX), and Article 17 (section I) of the Internal Regulations of the Bank of Mexico, which provide for the attribution of the Bank of Mexico, through the General Directorate of Central Bank Operations and the Directorate of Central Bank Regulations, respectively, to issue provisions; Article 1 (sections I and IV) of the Agreement on the Affiliation of the Administrative Units of the Bank of Mexico, with the objective of promoting the sound development of the financial system, has resolved to modify the characteristics of the U.S. dollar deposits it receives from these institutions, reforming for this purpose section M.71.21.6 of Circular 2019/95, to read as follows:

M.71.2 CASH DEPOSITS IN FOREIGN CURRENCY AT THE BANK OF MEXICO

M.71.21. U.S. DOLLAR DEPOSITS

“M.71.21.6 The Bank of Mexico will pay interest monthly on the daily balance that institutions maintain in the account designated as U.S. Dollar Deposits of Multiple Banking, payable abroad, at the annual interest rate resulting from subtracting 1/8 of a percentage point from the average daily interest rate that the Bank of Mexico obtains from its investments in international markets in deposits designated as 'overnight' in U.S. Dollars. The rates will be communicated to the institution in the respective account statement.

The amount of interest corresponding to each day will be determined by dividing the applicable annual interest rate by 360 and multiplying the result by the balance that institutions maintain in the account on the day in question.

On the first banking business day of each month, in the U.S. Dollar Deposits of Multiple Banking, payable abroad account, the Bank of Mexico will credit the amount of interest accrued for the said account in the immediate preceding month.”

TRANSITORY

SINGLE. This Circular shall enter into force on October 22, 2008.