About Bank of Mexico
Twenty-five years ago, on April 1, 1994, the reform to article 28 of the Political Constitution of the United Mexican States entered into force, through which autonomy was granted to the Bank of Mexico and the priority mandate of maintaining the purchasing power of the National currency. In our country, the creation of a central bank that would endow the national economy with currency and that in this function would seek the stability of its purchasing power constitutes an old aspiration. Since the 1917 Constitution, it was established that, in order to put an end to plurality and the problems associated with private issues, it was necessary to issue national currency as an exclusive function of the State, which would be delegated to a central bank.
One can speak of different stages in the institutional design of Banco de México and in its margins of independence: a first, which would be from its foundation in 1925 to 1938, in which the statutes guaranteed a certain autonomy; a second, which reaches until 1970, in which, despite the absence of a suitable legal framework, effective independence was exercised for several decades based on clarity regarding the limits and potential of monetary policy between the monetary authorities and fiscal and a third in which it was decided to move towards full institutionalization and which, as of 1994, is based on a clear constitutional autonomy…Continue reading about Bank of Mexico here.