Banco de México published a circular that allows it to buy government securities to inject liquidity, a power it did not have until now. The limit is 100 billion pesos in Bondes F and CETES.
Banco de México (Banxico) expands its toolkit for monetary regulation. Circular 8/2026, published on June 15 in the Official Journal of the Federation, authorizes the central bank to buy government securities in the secondary market, an operation that until now it could only perform in reverse: selling securities to withdraw liquidity.
The goal is to keep the overnight interbank rate as close as possible to the monetary policy target, currently at 6.5%. When there is excess money, Banxico sells bonds to banks to absorb it; when it is scarce, it can now buy them to inject it. The operational symmetry is the major novelty.
Bondes F, the star vehicle for the new tool
Bondes F are federal government debt bonds with a variable rate, whose yield is updated with the overnight interbank rate. This design makes them the ideal instrument for monetary regulation operations, as their price does not distort the long-term yield curve. Banxico already had a significant balance of these securities in circulation, ensuring sufficient paper available.
Purchases will be limited to Bondes F and, complementarily, CETES. The maximum limit is 100 billion pesos at nominal value, the same ceiling that already existed for sales. The operations will be extraordinary and discretionary, and will only be activated when the money market conditions require it.
It is not Quantitative Easing, clarifies the central bank
In light of the noise generated, Banxico has already provided details to avoid confusion. The measure is not a Quantitative Easing (QE). QE is an unconventional policy applied when the interest rate is close to zero and aims to stimulate the economy. In Mexico, the target rate is 6.5%, far from zero. Additionally, purchases are limited to short-term securities (CETES and Bondes F) and are conducted in the secondary market, not with the government. The goal is not to create abundant liquidity, but to ensure that the money market functions properly.
The circular arrives at a time of scrutiny over the credibility of the central bank. Any new tool will be examined closely, and Banxico has the responsibility to communicate it accurately. What remains to be seen is whether it is used well and how frequently.
For the investor or the citizen, the measure does not change the inflation outlook or long-term interest rates. But it does reinforce Banxico's ability to prevent shocks in the daily liquidity of the banking system, which ultimately protects the value of the peso and financial stability. The tool has been available since the publication of the circular.
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