01761cas a2200253 a 4500 AALejournalIMF002326 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451925388 1018-5941 BD-DhAAL BD-DhAAL Khor, Hoe. Interest Rates in Mexico : The Role of Exchange Rate Expectations and International Creditworthiness / Hoe Khor, Liliana Rojas-Suarez. Washington, D.C. : International Monetary Fund, 1991. 1 online resource (38 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper explores how interest rates on domestic financial assets in Mexico are linked to expectations of exchange rate changes and to perceptions about the default risks contained in Mexico's external debt. It is shown that the interest rate differentials between peso- and U.S. dollar-denominated domestic assets reflected some concerns about the exchange rate policy during the period under study. In addition, the evidence suggests that the interest rate on a U.S. dollar-denominated Mexican domestic asset is linked (i.e., cointegrated) to the yield implicit in the secondary market price for external debt issued by Mexico. Mode of access: Internet Rojas-Suarez, Liliana. IMF Working Papers; Working Paper ; No. 1991/012 Full text available on IMF http://elibrary.imf.org/view/journals/001/1991/012/001.1991.issue-012-en.xml IMF e-Library