Mexico continued to capture capital in the markets

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Although the financial uncertainty that caused capital outflows from emerging markets prevailed in June, some continued to capture flows that boosted their international reserves, including Mexico and Turkey, according to a recent report. report which made known the Institute of International Finance (IIF, by its abbreviations in English).

Increased trade tensions and higher rates on the part of the Federal Reserve (Fed) in the United States generated the withdrawal of capital in hands. In the report entitled "Difficult Times", he pointed out that this amount is greater than the $ 6,300 million that non-residents of these markets took in May.

However, net capital flows to emerging markets remained solid at nearly $ 27 billion in May.

The IIF, an association the global activity of financial institutions founded in 1983, pointed out that Asia was the emerging market most affected by capital outflows, due to the threats of A trade war between China and the United States.

Thus, out of a total of $ 8 billion escaped emergencies, Africa came $ 4 billion, from Asia $ 2,700 billion, and the rest of the world. 39 Latin America.

Winds against. The month of June ended the weakest quarter since the end of 2016 as emerging markets face headwinds, he said.

He noted that since March, volatility has increased in emerging markets. but unlike other recent episodes of capital outflow from emerging nations, he joins China that may have been affected by the intensification of trade disputes with the United States. He pointed out that, given trade tensions and divergent economic prospects, they also caused a sharp rebound in US asset allocation allocations at the expense of other developed and emerging markets.

Under this scenario, given the prolonged weakness of emerging market flows, it would not be surprising and see a manifestation of relief and some tactical rebalancing if the trading story improves or the dollar falls in the price.

Among net capital flows, which include foreign direct investment, he said that they remained healthy in May, with an increase calculated for emerging countries from 19,600,600 million in April to 26,600 $ 600 million in May.

With that the rate of accumulation of international reserves in these countries was the strongest, with 113 billion dollars.