Gabriel Cuadra: Monetary and exchange rate regimes in Mexico1925-2025
Speech by Mr Gabriel Cuadra, Deputy Governor of the Bank of Mexico, at the colloquium "Banco de México, 100 years since its foundation", organised by the Instituto de Investigaciones Económicas, UNAM, Mexico City, 8 October 2025.
The views expressed in this speech are those of the speaker and not the view of the BIS.
Good morning, everyone. I would like to thank Armando Sánchez Vargas, director of the Institute of Economic Research at the Universidad Nacional Autónoma de México, for inviting me to participate in this colloquium celebrating the 100th anniversary of the founding of Banco de México.
The history of this institution can be explored from various perspectives. On this occasion, I will focus on the monetary and exchange rate regimes through which Banco de México has transitioned since its foundation up to the present day. This perspective is particularly relevant since Mexico is a small, open economy and, as such, monetary policy is closely intertwined with the exchange rate regime.
During the early years of Banco de México, as in many other economies, the gold standard prevailed in our country. Later, with the introduction of fiat money, a prolonged period followed in which predetermined exchange rate regimes were maintained. Within this framework, several modalities emerged, notably, the fixed exchange rate regime that prevailed until the 1970s. In addition, we had controlled exchange rate, crawling peg, and exchange rate band regimes. Finally, in the 1990s, a free-floating exchange rate regime was adopted.