Years of current account deficit attract foreign investors to Mexico. Under the industrialised nations’ low-interest policy, portfolio inflows increased sharply and replaced direct investment as the main source of finance. One of the measures taken to identify risks posed by the strong portfolio inflows and to coordinate responses between various economic-policy institutions was the establishment of what is known as the Financial System Stability Council.

Mexico – portfolio inflows finance a large portion of the current account deficit(PDF, 80 KB, non-accessible)