ABN Amro Bank: "Corto" is non-operative.

Internet Securities, February, 2004

MEXICO CITY, Feb 24, 2004 (Especialistas en Medios/Corporate Mexico by Internet Securities, Inc. via COMTEX) -- The increase of the "corto" (the daily withdrawal of circulating capital from the money market) as an instrument to control the monetary policy has reopened the polemics about the convenience of replacing it for a reference rate.

Fernando Losada, economist of ABN Amro Baank for Latin America, said that the restricting mechanism was designed only as a short-term answer, and therefore other solutions to increasing inflation should be sought.

Nevertheless, Raul Feliz, researcher of the Economic Education and Study Center (CIDE), considered that among the resistance of the Bank of Mexico (Banxico) to replace the corto, is the fact that a reference rate...

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