Mexico is the most attractive emerging market for portfolio investments in recent weeks, above markets such as China. This occurred according to the Institute of International Finance (IIF) after the lack of arguments from the Federal Reserve of the United States (Fed) to raise their rates.
According to information gathered by El Economista, the IIF's analysis was made based on market prices and confirms that the 8.25% granted by Mexico above the US Fed has made Mexican government bonds more attractive to foreign investors.
Emerging markets, less located, according to the analysis, are Brazil and Russia. However, the rebound in these flows may be the result of the contraction of last year.
The IIF highlights the activity of investors in the current context of volatility. The analysis highlights that investors are looking for safe assets, such as US Treasury bonds. Not so the central banks of emerging economies, which rebuild their reserve assets, especially in gold.
In the analysis of the Institute of Finance, they highlighted that the official gold holdings of central banks reached a record high of 33.7 million tons during the past year. However, the rate of accumulation was the slowest in a decade.