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Current Day Mexico

Mexico's credit line has fluctuated since the 2009 agreement, rising to $88 billion in 2016 and decreasing to $74 billion in 2019. The credit line decreased because Donald Trump threatened to disband the North American Trade Agreement. As of November 22, 2019, the IMF and Mexico have reached an agreement of $61 billion dollars for a provisional two year period. This FCL is at the disposal of the Mexican government as an insurance policy, should anything happen within the economy. The Mexican economy remains stable, with the peso at the same rate of inflation as years prior. Consumption has risen, which is projected to boost the economy by the end of 2019, despite the decrease in foreign investment. Since the 2009 agreement, Mexico's economy has become better able to handle economic surprises that could have been more detrimental. Mexico faces pressure from the IMF to reform its' economic policy and make changes to the proposed budget by President Obrador. The IMF is skeptical of President Obrador's projections regarding tax reforms and issues with Pemex.

2009 Increased Credit Line However, the program was renewed less than a year later on March 25, 2010. The flexible credit line (FCL) allowed Mexico to remain a reliable player internationally. However, the FCL did not prevent Mexico from having a record low GDP when compared to other Latin American countries. The 2008 financial crisis in the United States had a big impact on the Mexican economy because relations between both countries were close and friendly. Their friendly economic relationship was namely due to NAFTA, which is a free trade agreement in North America between the United States, Mexico, and Canada. The U.S./Mexico relationship was one of Mexico's greatest assets and allowed for Mexico to become one of the most important Latin American countries due to its increase in manufacturing factories and economic reforms. The FCL allowed Mexico to handle the pressures from other Latin American countries because with the financial and ideological support from the U.S., Mexico could be a formidable opponent. U.S interests lie with Mexico because Mexico is a good indicator of the economies from other nearby countries in Latin America. In 2009, Mexico's increased credit line was sufficient to remain relatively stable.