Circular 64/2008 — Modifies Circular 2019/95

"2008, Year of Physical Education and Sport" CIRCULAR 64/2008 Mexico, D.F., December 24, 2008. TO THE MULTIPLE BANKING INSTITUTIONS: SUBJECT: DEPOSITS IN UNITED STATES DOLLARS.

The Bank of Mexico, based on Articles 28 of the Political Constitution of the United Mexican States, sixth and seventh paragraphs; 3rd, fraction I, 7th, fractions II, VII and X, 8th, 14, 16, 24 and 26 of the Bank of Mexico Law; 22 of the Law for Transparency and Order of Financial Services; 8th, third and sixth paragraphs, 12 in relation to 19th, fraction IX and 17th, fraction 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 Banking Operations and the Directorate of Central Banking Regulations, respectively, to issue provisions; Unique of the Agreement on the Affiliation of the Administrative Units of the Bank of Mexico, fractions I and IV, with the objective of promoting the sound development of the financial system by specifying the manner and terms in which it may be requested that the dollar deposits received by this Central Institute from these institutions be constituted as collateral, has resolved to modify paragraphs two of numeral M.71.12.41; 1.21.3, subsection f), paragraph two and Appendix 3, both of Annex 1; Annex 4, as well as numeral 5.3, subsection f), paragraph two and the Appendix, both of Annex 5, all of Circular 2019/95, to read as follows:

2

M.7 OPERATIONAL RULES M.71. DEPOSITS AND LIQUIDITY REPurchase OPERATIONS M.71.1 NATIONAL CURRENCY CASH DEPOSITS AT THE BANK OF MEXICO M.71.12. CASH DEPOSITS

"M.71.12.41. . . .

With respect to collateral constituted with the United States dollar deposits referred to in subsection iv) above, institutions must request that for such purposes they be segregated into the special guarantee account held for them by the Bank of Mexico, through SIAC-BANXICO, or any other electronic, computing or telecommunications medium authorized for such purpose by the Bank of Mexico, or in requests prepared in accordance with Annex 4, duly signed by representatives of the institution who have the authority to exercise acts of dominion. The value of the collateral shall be determined by applying the exchange rate published by the Bank of Mexico in the Official Gazette of the Federation on the date of its constitution, minus the discount factor to be made known through the Bank of Mexico site on the Financial Network, at the address: http:\webdgobc."

3

Annex 1 NATIONAL CURRENCY INTERBANK EQUILIBRIUM INTEREST RATE (TIIE)

1.21. Financing that the Bank of Mexico will grant to participating institutions

"1.21.3 Loans shall have the following characteristics:

f) Collateral: . . .

With respect to collateral constituted with the United States dollar deposits referred to in subsection iv) above, institutions must request that for such purposes they be segregated into the special guarantee account held for them by the Bank of Mexico, through SIAC-BANXICO, or any other electronic, computing or telecommunications medium authorized for such purpose by the Bank of Mexico, or in requests prepared in accordance with Appendix 3 of this Annex, duly signed by representatives of the institution who have the authority to exercise acts of dominion. The value of the collateral shall be determined by applying the exchange rate published by the Bank of Mexico in the Official Gazette of the Federation on the date of its constitution, minus the discount factor to be made known through the Bank of Mexico site on the Financial Network, at the address: http:\webdgobc.

. . ."

4

"Appendix 3 MODEL OF INSTITUTION'S REQUEST TO THE BANK OF MEXICO (INSTUTION'S LETTERHEAD)

Mexico D.F., ______________________. General Directorate of Central Banking Operations Bank of Mexico

Present,

Through this channel, I request the Bank of Mexico, on behalf of (full name of the multiple banking institution, including, if applicable, the financial group to which it belongs), to carry out from this date the actions that may be necessary to segregate into the special guarantee account held by this Institution the amount of $______ (______ United States dollars) in order to guarantee the loans incurred in accordance with the provisions of Annex 1 of Circular 2019/95.

Sincerely,

Name and signature of the representative(s) of the Institution with authority to exercise acts of dominion 1

c.c.p.: Operational Processing Directorate National Operations Processing Management International Operations Accounting Sub-management

This communication may be directed to the following email accounts and fax numbers:

Email Account Fax Number gcasas@banxico.org.mx 5227-8712 ljimenez@banxico.org.mx 5227-8709 ncastro@banxico.org.mx 5227-8787"

1 A certified and simple copy of the deed in which the authority of the representative(s) to exercise acts of dominion is stated, as well as a simple copy of their official identification(s), must be sent at least two business days in advance of the date on which this communication is intended to take effect, to the Sub-management of National Operations Instrumentation within the hours between 9:30 and 14:30.

5

"Annex 4 MODEL OF INSTITUTION'S REQUEST TO THE BANK OF MEXICO (INSTUTION'S LETTERHEAD)

Mexico D.F., ______________________. General Directorate of Central Banking Operations Bank of Mexico

Present,

Through this channel, I request the Bank of Mexico, on behalf of (full name of the multiple banking institution, including, if applicable, the financial group to which it belongs), to carry out from this date the actions that may be necessary to segregate into the special guarantee account held by this Institution the amount of $______ (______ United States dollars) in order to guarantee the overdrafts incurred in accordance with the provisions of numeral M.71.12.41. of Circular 2019/95.

Sincerely,

Name and signature of the representative(s) of the Institution with authority to exercise acts of dominion 2

c.c.p.: Operational Processing Directorate National Operations Processing Management International Operations Accounting Sub-management

This communication may be directed to the following email accounts and fax numbers:

Email Account Fax Number gcasas@banxico.org.mx 5227-8712 ljimenez@banxico.org.mx 5227-8709 ncastro@banxico.org.mx 5227-8787"

2 A certified and simple copy of the deed in which the authority of the representative(s) to exercise acts of dominion is stated, as well as a simple copy of their official identification(s), must be sent at least two business days in advance of the date on which this communication is intended to take effect, to the Sub-management of National Operations Instrumentation within the hours between 9:30 and 14:30.

6

Annex 5 LIQUIDITY AUCTIONS CARRIED OUT BY THE BANK OF MEXICO

5. FORMALIZATION OF ALLOCATIONS.

"5.3 Loans shall have the following characteristics:

. . .

f) Collateral: . . .

With respect to collateral constituted with the United States dollar deposits referred to in subsection iv) above, institutions must request that for such purposes they be segregated into the special guarantee account held for them by the Bank of Mexico, through SIAC-BANXICO, or any other electronic, computing or telecommunications medium authorized for such purpose by the Bank of Mexico, or in requests prepared in accordance with the Appendix of this Annex, duly signed by representatives of the institution who have the authority to exercise acts of dominion. The value of the collateral shall be determined by applying the exchange rate published by the Bank of Mexico in the Official Gazette of the Federation on the date of its constitution, minus the discount factor to be made known through the Bank of Mexico site on the Financial Network, at the address: http:\webdgobc.

. . ."

7

"Appendix MODEL OF INSTITUTION'S REQUEST TO THE BANK OF MEXICO (INSTUTION'S LETTERHEAD)

Mexico D.F., ______________________. General Directorate of Central Banking Operations Bank of Mexico

Present,

Through this channel, I request the Bank of Mexico, on behalf of (full name of the multiple banking institution, including, if applicable, the financial group to which it belongs), to carry out from this date the actions that may be necessary to segregate into the special guarantee account held by this Institution the amount of $______ (______ United States dollars) in order to guarantee the loans incurred in accordance with the provisions of Annex 5 of Circular 2019/95.

Sincerely,

Name and signature of the representative(s) of the Institution with authority to exercise acts of dominion 3

c.c.p.: Operational Processing Directorate National Operations Processing Management International Operations Accounting Sub-management

This communication may be directed to the following email accounts and fax numbers:

Email Account Fax Number gcasas@banxico.org.mx 5227-8712 ljimenez@banxico.org.mx 5227-8709 ncastro@banxico.org.mx 5227-8787"

3 A certified and simple copy of the deed in which the authority of the representative(s) to exercise acts of dominion is stated, as well as a simple copy of their official identification(s), must be sent at least two business days in advance of the date on which this communication is intended to take effect, to the Sub-management of National Operations Instrumentation within the hours between 9:30 and 14:30.

8

TRANSITORY UNIQUE This Circular shall enter into force on December 24, 2008.