The Bank of Mexico (Banxico) reported that the monetary base (banknotes and coins in circulation and bank deposits in the current account at the Bank of Mexico) increased 5.879 billion pesos, reaching a balance of 1.92 trillion pesos. "The monetary base has increased due, in part, to factors associated with the health measures implemented in the country, which would have increased the demand for cash by the public as a means of payment.
According to a statement, the figure reached by the monetary base on August 14th, 2020 meant an increase of 353,581 billion pesos over the same date last year. Meanwhile, the country's international reserves decreased by 123 million dollars in the week ending August 14th. Thus, the balance at the end of the week, from August 10th to 14th, was 192.531 billion dollars, reported the autonomous agency.
The decline was recorded after nine weeks of growth in the number of international reserves, the balance of the week from August 3 to 7 totaled 192.654 billion dollars, according to the Banxico document. The increase began in the week ending June 12 with a balance of 188,105 million dollars. This figure implied an annual variation of 22.6%.
In this regard, Banxico Mexico explained that the weekly variation in the international reserve was the result of an increase in the sale of dollars from Pemex to Banxico for 120 million dollars. It also reported that there was a reduction of 243 million dollars by the change in the valuation of the international assets of the Central Institute.