Emerging Markets Rates and Currencies Handbook

Mexico (MXN - Mexican Peso) Citi in Mexico Citigroup operates in Mexico as Citibanamex, one of the largest banks in the country. The corporate client coverage spans ~750 — 850 clients of which ~600 either have a multinational presence or are subsidiaries of internationally established names. The Mexican market is well developed with significant market liquidity and depth of financial product utilization. The CitiBanamex Treasury specifically is able to execute and book transactions locally allowing for cost efficiencies in case of intercompany funding. Local trading teams manage the risks associated to transactions booked onshore. Market Overview Within Latin America, the Mexican foreign exchange market is the most open to trade and the Mexican Peso (MXN), the most liquid currency. The Mexican peso ranks as one of the most traded currencies in emerging Markets. Additionally, it is the only Latin American currency that can be settled through the Continuous Linked Settlement foreign exchange settlement system (CLS). The Foreign Exchange Commission is composed of members of the Secretaría de Hacienda y Crédito Público (Ministry of Finance) and Banco de Mexico (Central Bank — Banxico). They are responsible for developing the foreign exchange policies in Mexico, while Banxico is responsible for the implementation. Banxico is an autonomous institution and manages the currency under a free floating regime in which free convertibility is permitted. Despite the free float policy, the Foreign Exchange Commission may entitle Central Bank to trade in the exchange market in order to manage reserves accumulation levels and address excessive price volatility. Convertibility The Mexican peso is fully convertible. Interest Rate Conventions Trading hours 7:30 AM to 2 PM (GMT -6:00). An IRS is the exchange of fixed interest payments vs. floating rate related to a notional amount. Referenced to the 28 day TIIE (Interbank equilibrium interest rate). This reference is published at 12:30 pm local time by the Central Bank on a daily basis and computed using quotes 230