Get an overview of the main financial indicators of the Mexican economy for the April - June 2018 period.

1. Our Monthly
Newsletter
July 2018
Nuricumbo + Partners
Business Assurance • Interim Management • Risk • Strategy

2. Content
Country Risk
Stock Exchange
Treasuries Market
1.1
1.2
1.3
1.4
Exchange Rates
Inflation Rate1.5
Economic Confidence Indicator (IMCE)1.7
International Reserves1.8
Foreign Direct Investment1.9
Article Exchange
Latin America Update
Our Service Portfolio
2.1
2.2
2.3
Featured Content
Success Case Studies
3.1
Your Practice Leaders
3.2
Contact Information
3.3
3.4
Mexico Economic Overview Knowledge Center
How we can help
Investment Unit (UDI)1.6

3. Note: Mexican Pesos per Currency
Source: Mexican Central Bank, www.banxico.org.mx, 2018
$21.60
$22.10
$22.60
$23.10
$23.60
$24.10
$24.60
$25.10
29/06/18
$22.9215
April May June
30/04/18
$22.7248
31/05/18
$23.3259
$16.15
$17.15
$18.15
$19.15
$20.15
$21.15
$22.15
29/06/18
$19.6912
April May June
30/04/18
$18.7878
31/05/18
$19.9759
$23.80
$24.60
$25.40
$26.20
$27.00
$27.80
$28.60
29/06/18
$25.8733
April May June
30/04/18
$25.7863
31/05/18
$26.6199
Exchange Rates
$13.50
$14.00
$14.50
$15.00
$15.50
$16.00
$16.50
29/06/18
$14.9925
April May June
30/04/18
$14.6049
31/05/18
$15.4178
1.1

4. 194
214
208
180.00
185.00
190.00
195.00
200.00
205.00
210.00
215.00
220.00
April May June
EMBI - Country Risk
Note: Basis points
Country Risk
1.2
The Country Risk indicates the possibilities of an
emerging country failing to fulfill its obligations
over external debt payments, whether for capital
or interest.
It is composed of three main sources:
• Sovereign Risk
• Transfer Risk
• Generic Risk (political, social, devaluations)
The Big Three credit rating agencies are Standard &
Poor's (S&P), Moody's, and Fitch Group, providers
of credit ratings, research, and risk analysis.
The Emerging Markets Bond Index (EMBI) is a
benchmark index for measuring the total return
performance of international government bonds
issued by emerging market countries that are
considered sovereign. The EMBI includes dollar-
denominated loans and Eurobonds. The higher the
Country Risk, the larger the possibility of default.
Source: www.economia.com.mx, 2018 and www.countryeconomy.com, 2018.
Moody’s S&P Fitch
Date
Rating
Outlook
Date
Rating
Outlook
Date
Rating
Outlook
11/04/18 A3 (Stable) 18/07/17
BBB+
(Stable)
16/03/18
BBB+
(Stable)
United Mexican States Credit Rating
Long Term Rating – Foreign Currency

5. Source: Mexican Stock Exchange (BMV), http://www.bmv.com.mx/, 2018
48,358.16
44,662.55
47,663.20
42,000
43,000
44,000
45,000
46,000
47,000
48,000
49,000
April May June
Indice de Precios y
Cotizaciones (IPC)
Mexican Stock Exchange
1.3
The Mexican Stock Exchange (BMV) is a public
institution that operates under a concession granted
by the Ministry of Finance (SHCP), observing the
Mexican Securities Law. BMV is the second largest
stock exchange in Latin America with a total market
capitalization of over US$ 530 billion and 140
companies listed.
Its shareholders are authorized brokerage firms, which
each own one share. Its broad market indicator is
known as “Indice de Precios y Cotizaciones” (IPC).
On August 29, 2017, SHCP granted a new concession to
Bolsa Institucional de Valores (“BIVA”) to operate a
new stock exchange in Mexico.
Examples of Marketable Securities
• Capitals Market (Stocks, Fibras)
• Capital Development Market (CKDes)
• Debt Market (Government, Short, Medium and
Long Term Debt).

6. Source: Mexican Central Bank, www.banxico.org.mx, 2018
7.47% 7.48%
7.70%
7.30%
7.40%
7.50%
7.60%
7.70%
7.80%
April May June
Government Treasuries Auction’s
Monthly Results (Cetes 28-days)
Treasuries Market
1.4
Mexico’s Central Bank (Banxico) carries out operations
in the securities market in order to regulate the
liquidity of Mexico’s financial system.
It also undertakes primary auctions of securities for the
government and other public sector entities, and
issues regulations on several financial operations of
financial intermediaries.
Cetes 28
Zero coupon bonds denominated in Mexican Pesos
issued by the Mexican Government. The instrument
due in 28 days is a common reference.
TIIE
The Equilibrium Interbank Interest Rate (TIIE) is
determined by the Bank of Mexico based on quotes
presented by credit institutions, and is calculated on a
daily basis (for periods of 28 and 91 days) having as its
starting date the publication in the Official Gazette of
the Federation. Highly used to set credit operations in
Mexico.
7.85% 7.86%
8.10%
7.70%
7.80%
7.90%
8.00%
8.10%
8.20%
April May June
TIIE – 28 days

7. Source: Mexican Central Bank, www.banxico.org.mx, 2018
5.04%
4.55%
4.51%
4.20%
4.30%
4.40%
4.50%
4.60%
4.70%
4.80%
4.90%
5.00%
5.10%
April May June
Annualized Inflation Rates
measured monthly
Inflation Rate
1.5
Inflation can be defined as a continuous and
widespread increase in goods and services
prices.
The inflation rate for Mexico is based upon
the Consumer Price Index (CPI). INEGI
(Instituto Nacional de Estadística Geografia e
Informática) is responsible for calculating and
publishing the rate in the Official Gazette of
the Federation within the first 10 days of
every month.
The Consumer Price Index (CPI) is the
statistical instrument that calculates inflation
by continuously measuring the price changes
of households’ representative basket of
goods and services.

8. Source: Mexican Central Bank, www.banxico.org.mx and Ministry of Finance, www.sat.gob.mx, 2018
The Investment Unit (Unidad de Inversion,
UDI) is a value unit linked to the overall
movement of prices. It is commonly used in
financial operations or investment
instruments that are required to guarantee a
return above inflation. The Mexican Central
Bank is the responsible authority to publish
its value in Mexican Pesos for each day of the
month.
6.026212
6.005882
6.013531
5.995000
6.000000
6.005000
6.010000
6.015000
6.020000
6.025000
6.030000
April May June
Investment Unit (UDI)
Investment Unit (UDI)
1.6

9. Source: Public Accountants Mexican Association, IMCP, http://imcp.org.mx/, 2018
The Mexican Economic Confidence Index,
IMCE, is an indicator which aims to quantify
the expectation of the perceived business
climate through the perception of more than
20,000 registered public accountants of
nearly 60 colleges affiliated to Public
Accountants Mexican Institute, IMCP.
The indicator is divided into two main
components, which presents the current
perception in the business climate as well as
the perspective in six months. Its score is
measured through a range of 0 to 140 points.
Higher values represent higher optimism.
Economic Confidence Indicator (IMCE)
74.07
73.27
71.52
$70
$71
$71
$72
$72
$73
$73
$74
$74
$75
April May June
Economic Confidence
Indicator
1.7

10. Source: Mexican Central Bank, www.banxico.org.mx, 2018
Known as financial assets invested abroad by
the Mexican Central Bank that can easily be
converted into means of payment.
According to the Mexican Central Bank, the
following are considered as International
Reserves:
• Foreign bank notes and coins;
• Deposits, securities and stocks payable
outside of Mexico;
• Loans by Central Banks payable at no
longer than six months;
• The Special Drawing Rights at the
International Monetary Fund.
$173,257
$173,118
$173,177
$173,000
$173,050
$173,100
$173,150
$173,200
$173,250
$173,300
April May June
International Reserves
(Million USD)
International Reserves
1.8

11. Source: Ministry of Economy, https://www.gob.mx/se/, 2018
The Foreign Direct Investment (FDI) is an
important catalyst for development, since it has
the potential to generate employment, increase
savings and attract foreign exchange, encourage
competition, strengthen the transfer of new
technologies and boost exports. All this
positively affecting the productive and
competitive environment of a country.
The General Direction of Foreign Investment
(DGIE), as part of Mexico’s Ministry of Economy,
makes available a series of statistical and
economic documents on FDI.
Foreign Direct Investmet
1.9
Others, 5.7%
Massive
Media, 6.1%
Trasportation
, 10.3%
Commerce,
14.6%
Financial
Services,
63.3%
FDI Services Distribution by Sector
January – March 2018

12. Knowledge Center
Mexico Elections: 5 Takeaways from Lopez Obrador’s Victory
After 18 years of PRI-PAN governments, Mexicans have decided that another tpe of
change was needed, electing the leftist candidate Andrés Manuel Lopez Obrador as
president in a landslide victory. Capturing more than half the vote, Lopez Obrador
won by the largest margin in a presidential race since the nation transitioned to
democracy nearly 20 years ago. Here are five takeaways from the stunning victory of
Mr. Lopez Obrador and what to expect:
1. Rejecting the status quo
2. The Trump factor
3. Mexico’s immense challenges
4. Reshaping Mexican politics?
5. Investors watching warily
Featured Content
2.1

13. Andres Manuel Lopez Obrador
Mexican Presidential Elections Results
(July 9th, 2018)
Ricardo Anaya Cortes
Jose Antonio Meade
Jaime Rodriguez Calderon
53.19%
22.27%
16.41%
5.23%
Source: Electoral National Institute, www.ine.mx/, 2018

14. Article Exchange
Strategies for Quality Work in Single Audits
Like many members of the CPA profession, single audit practitioners will be managing a change process while
maintaining an intense focus on quality.
Automation Won’t Reduce Finance Staffs: Study
In a survey of 1,730 financial executives (96% from the U.S. or Canada), only 3% from the U.S. and 6% from Canada said
they expect to pare their finance and accounting teams as a result of digital transformation.
Here's How Much Trump's Tariffs Could Boost Prices on the Top-Selling Vehicles in the U.S.
The looming threat that the U.S. will impose a tariff as high as 25% on imported vehicles and components has the auto
industry in a tizzy right now, and for good reason.
14 Predictions for the Future of Media
The media landscape is almost shifting more quickly than consumers can keep up. But certain trends have emerged that
will carry the media industry into the future.
A New playing Field for Business
The Supreme Court’s decision on sales tax collection could give smaller companies that rely on in-store sales a better
chance to compete with virtual retailers.
Uncollectible Balances
If your organization is proud of maintaining a very low rate of uncollectibles, you may want to take a harder look at the
books, as reported to APQC’s Customer Credit and Invoicing Open Standards Benchmarking survey.
2.2

15. Latin America Update
Top 1000 World Banks - Latin America and the Caribbean
records Highest LTD Ratio
Loan-to-deposit (LTD) ratios, a common yardstick for measuring
bank liquidity, have seen a mixed performance in the 2018 Top
1000 World Banks rankings. The biggest regional rise in LTD ratios
in the 2018 ranking was seen in Latin America and the Caribbean,
where the aggregate rose by more than 34.3 percentage points to
120.12%.
Foreign Direct Investment for Latin America and Caribbean
Drops for Third Straight Year
Despite an international context characterized by stronger growth
in the global economy, abundant international liquidity, high
corporate returns and optimism in financial markets, the flows of
Foreign Direct Investment (FDI) in Latin America and the
Caribbean fell for the third year in a row in 2017.
It’s time to double down on Latin America
Latin America is slowly but steadily catching-up with international
anti-corruption enforcement trends. Countries like Colombia,
Mexico, Guatemala, Peru, Chile and Argentina are all striving to
improve their legal integrity frameworks and address corruption.
For both companies in the region that have long turned a blind
eye to corruption risks and companies that have avoided
investing in Latin America rather than engage with those risks,
the time has come for a reappraisal.
Mexico Delivers Another Defeat to the Status Quo in Latin
America
Mexico’s presidential election, which has brought the party that
governed the country for more than 70 years to the point of ruin,
was the latest in a string of blistering defeats for incumbent parties
across Latin America. Recent elections in the region have delivered
decisive losses to governing parties of all political stripes. Some
countries, like Mexico, have tacked left; others, like Colombia and
Chile, right.
Open Banking In Latin America Isn't Waiting For Mandates -- And
It Shouldn't
If recent interest in fintech-bank collaborations is any indication,
many financial institutions in Latin America will not wait and see
what happens with the rollout of open banking and application
programming interface (API) rules in Europe, Mexico and
elsewhere before kicking off their own initiatives. And they
shouldn’t.
What ‘peak politics’ might mean for Latin America
From Italy’s new government, to US trade policy and world oil
prices, political risk has been a major driver of financial markets
this year. That is doubly true in Latin America. Growing political
risk, combined with the rising dollar and higher US interest rates,
has sapped Latin American equities, hurt bonds and undercut
currencies.
2.3

16. WE ARE NURICUMBO + PARTNERS

17. CONSULTING POWER THAT CAN BE
AVAILABLE FOR THE TIME REQUIRED BY
YOUR PROJECT, WITH NO LONG TERM
COMMITMENTS AND WITH HIGH LEVELS OF
FLEXIBILITY.
 All our practice leaders are senior level
executives with experience in
multinational corporations and in specific
functional roles.
 We get the job done at the same time
that we become agents of change for our
clients, bringing a fresh perspective into
problem-solving and sharing past
experiences and best practices.
 Capable of fully embedding into your
operations and creating value since the
very first day (Touch & Play).
Our Value Proposition
3.1

18. OUR SERVICE PORTFOLIO
BUSINESS ASSURANCE
 Business Process Assessments
 Internal Audit Co-Sourcing
 Forensic Investigations
 Know Your Customer / Supplier
 Financial Due Diligence (M&A)
 Loan Review
 Contract Compliance
TALENT SOLUTIONS
 Interim Management
 Project Support
 Rotation Insurance
 Test-Drive Model (Contract-to-Hire)
 Project Management
 Change Management
 Training & Development
FINANCE OPTIMIZATION
 Cost Savings Initiatives
 Process Automation
 Trust (Fideicomiso) Management
 Credit Solutions
 Private Equity
 Treasury in the Cloud
 Retirement & Insurance
STRATEGY & COMMUNICATIONS
 Strategic Planning
 Advisory Board
 Innovation & Disruption
 IPO Readiness
 Crisis Management
 Business Landing Services
 Proprietary Marketing Program

19. Manejo de Fideicomisos
Ideal para manejar o administrar:
 Proyectos inmobiliarios.
 Proyectos de inversión.
 Asociaciones Público-Privadas.
 Garantías crediticias.
 Planeación patrimonial.
 Sucesiones, testamentos y legados.
 Protección de activos.
TENEMOS UNA ALIANZA CON EL FIDUCIARIO NO BANCARIO MÁS GRANDE DE MÉXICO (25MIL MILLONES DE
PESOS BAJO ADMINISTRACIÓN), LO CUAL NOS PERMITE ESTRUCTURAR, ADMINISTRAR Y CONTROLAR
OPERACIONES FINANCIERAS Y COMERCIALES COMPLEJAS, CON LA CERTEZA Y TRANSPARENCIA JURÍDICA
QUE BRINDA UN FIDEICOMISO, APALANCADAS POR UNA PLATAFORMA TECNOLÓGICA DE PRIMER NIVEL.
1
9
Fiduciarios hay muchos… pero nuestro
socio es el más Fintech de México.
 Identificación automatizada de
cobranza.
 Control digital de activos en garantía.
 Autorizaciones vía token bancario.
 Contratos inteligentes.
 Firma electrónica.
 Interfaces ya funcionando con los
principales bancos del país.
 Conciliaciones bancarias automáticas.
 Reportes y estados de cuenta en tiempo
real.
 Control total de los flujos entrantes y
salientes del fideicomiso.
Algunas otras ventajas:
 Flexibilidad para construir soluciones a la medida.
 Robusta estructura de controles y seguridad informática.
 Automatización de procesos y reportes.
 Mayor eficiencia y mejores tiempos de respuesta.
 A diferencia de algunos bancos, nuestro socio es un
especialista en fideicomisos, lo que le permite involucrarse
con mayor profundidad en su proyecto.
 Plataforma tecnológica en varios idiomas ideal para
administrar proyectos internacionales.
 Conectividad con Apps y Laptops para administración remota
de operaciones.
 Y todo esto a un costo menor que con fiduciarios
tradicionales.
ESTAMOS LISTOS PARA PLATICAR SOBRE SU NEGOCIO.

20. Success Case Study
CLIENT:
CONTEXT:
OUR
INTERVENTION:
RESULTS:
Mexican mid-size enterprise. Privately held. $20M USD annual revenues.
Our client was looking into different strategic alternatives to ensure growth in
the mid-term, including M&A, joint ventures, and international expansion. At
the same time, there were several challenges related to the integration of new
technologies into their service offer and, in general, understanding and guiding
the digital transformation of their business.
We proposed the creation of a formal business advisory board to support the
owners in the strategic decisions of their business. The board was integrated by
eight people. Three of the eight were consultants from our firm, the other three
were company partners, and we supported the recruitment of other two board
members with specific knowledge of digital technologies.
We established the agenda for the meetings, acted as facilitators and deployed
several strategic planning tools in order to help define a vision and a list of
priorities. We provided expert input into several of the discussions, gave
feedback to the partners, and pushed the process forward.
The business advisory board was key to exploring new concepts and ideas. It
helped the owners to put their thoughts and priorities in order, to determine the
set of strategies that better fit their overall vision, and to be more confident and
decisive in their decision making process. Once priorities and initiatives were
identified, the board supervised and supported their proper execution.

21. Complete Profiles
Armando Nuricumbo
Jorge Pulido
Oscar Becerril
Guillermo Lagos German de la Garza
CPA. CFE. MsC.
MBA.
MBA.
PhD. Former President Staff
Jesus Bush
MBA.
Accounting. Finance.
Risk. Audit. Strategy.
Financial Markets.
Investor Relations.
Corporate Strategy.
Disruptive Thinking.
Financial Services.
Credit. Risk. M&A.
Intrapreneurship.
50+ Talent Solutions.
Government
Relations. PR & Crisis.
Your Practice Leaders
Alejandro Rico
MsC.
Tax advice.
Compliance initiatives.
Jose Trevino
Former NAFTA team
International Relations.
Business Landing.

22. How we can help your business projects
Immediate and
flexible support
for your projects
and initiatives
8
Practice
Leaders
More information
Full scalability. We
can be as big or
small as your
specific project
needs. Our lean
structure means
very atractive
consulting rates
Team of
internationally
recognized
business advisors
who provide a
fresh and
independent
point of view
Highly
personalized level
of service. We
focus on you! 32
Multi-
disciplinary
Senior
Consultants
20
Partnerships
with Other
Consultancies

23. We care about your business priorities.
Let’s talk!
E-mail: contacto@nuricumbo.com
Mobile/Whatsapp: + 52 (155) 5453 6309
Skype: nuricua
Twitter: @a_nuricumbo
Please visit our website