LatinNews Daily - 15 June 2023

* Mexico’s central bank (Banxico) has announced that the country’s financial system remains strong and resilient despite turbulence in international banking systems in the first half of 2023. In its biannual financial stability report, Banxico acknowledged the challenges posed by restrictive global financial conditions owing to high inflation and the general environment of uncertainty in financial markets. It also highlighted risks including decreased aggregate demand, lower-than-expected global economic growth and the possibility of a “global systemic event” which could affect the financial system. The report stated, however, that the Mexican banking system has sufficient levels of capital and liquidity, as well as the necessary regulatory requirements, to deal with adverse scenarios, having undergone stress tests which take such risks into account. The report further noted the strong performance of the Mexican peso since December 2022, despite the complex environment.