Portfolio investment is back but not like before...

Portfolio investment returned to Mexico in the third quarter: US$6.70 billion (net) came into the country in the form of investments in equities or fixed income instruments. This year's US$12.87 billion of portfolio investment through September is on a par with portfolio investment in the same period three years ago. But, it it is about half its level in the first nine months of 2011 and a third of its level in the first nine months of 2012. No wonder Mexico's central bankers are spreading the message that the monetary policy decisions by central banks in developed countries have consequences for emerging markets.