Discard government to encumber capital of short term

National
Cordero: We rely on the markets to order the exchange rate
Discard government to encumber capital of short term
By: Carlos Damian July26, 2010
The revaluation of the weight does not affect the exports of the country
Mexico. – The Mexican government discarded to apply a tax to the income of short term capital, which in the last weeks has provoked a revaluation of the value of the peso. "We rely on the markets to order the exchange rate", assured Ernesto Cordero Arroyo, executive of the Secretary of Treasure and Public Credit (SHCP). He asserted that the recovery in the value of the peso has not affected the competitiveness of the Mexican exports, sector that it has headed the recovery of the economy after the recession of 2009. On 23th day of April, the International Monetary Fund (IMF) recommended the Mexican authorities "to reflect" on the convenience of creating a tax to the flows of short term capital, one of the factors that they are behind the recent revaluation of the front peso to the dollar. However Cordero commented that before considering the application of some charge to subtract incentive to the revenue of short term capital, the Mexican government believes that the free flotation system of the exchange rate, outstanding from final of 1994, "has demonstrated strength and permitted country to face external shocks of ordered and reasonable way".Cordero upon answering to the question about whether go to create a tax to the banking operations to form a fund those avoid using resources of the contributors to recapture them in future crisis. He commented us that, it does not coincide of absolute way in which the prudential regulation must answer to the reality of an interconnected system, and be in conditions of avoiding contagion effects. It means that they do not go to create a financial fund. Ended, "without doubt one must to outline a fiscal reform that could have the majority, which increase the collection capacity not oil, permit to widen the base, has accounts surrender and strengthen the capacity of states and municipalities collection", noted.Earnings of the drug-trafficker are whitened in the financial system: U. S. A. Operations of money wash by 40 billion of pesos were denounced before the responsible Mexican authorities of the combat to the organized delinquency, informed this 25 of April the executive of SHCP. "There are very important amounts in terms of money wash. They have been presented bring face to face the general office of the prosecutor of the Republic (PGR) accusations of money wash by about 40 billion of pesos", of 2007 to date, it declared Cordero. In the webpage of the SHCP is realized of the banking operations suspicious and irregular, but not of the involved amounts. This indication is one of the scarce references of a top-level official of the financial sector to the economic dimension of the organized crime shares us. Assured that many of the detentions, of the seizures of the Mexican government to the organized delinquency and the irregular flows detection that are given through financial system, it is reported by the banks, then organized and executed by the instances and Mexican authorities. A report of the Department of United States state, published in March, assured that the earnings of the drug traffic are "the principal source of funds washed through Mexican financial system and of commercial operations". In that informs headlined International narcotics control strategy report, the State Department calculates that each year organizations of drug-traffickers send of United States to Mexico between 8 thousand and 25 billion of dollars, product of the drugs trade.Creek Lamb assured this Sunday that the bag and bank houses that operate in Mexico have a regulation "sufficient and effective" through the CNVB. He added that "evidently nothing is perfect and always there is a review process". Of January of 2007 to February of 2010, the financial intelligence Unit of the SHCP reported 493 "operations worriment” in the Mexican financial system. In this category are found all the transactions, activities, conduct or director behaviors, personnel officials and proxies of the financial institutions that "could infringe or be vulnerable" the application of the procedures against money wash, according to the pages of web of the governmental dependency (La Jornada, economía, p. 26, April 26, 2010)