EconomyA break for the Afores, they could have a...

A break for the Afores, they could have a better year in yields in 2023

The losses that the Afores have registered in the first eight months of 2022 may be overcome in 2023 if the economic and geopolitical perspectives improve.

From January to August, the Afores report losses of more than 304,000 million pesos (mdp), according to Consar data, and this behavior could be left behind next year as tensions between Russia and Ukraine ease, according to a .

“Despite the current circumstances, we hope that the negative impact will dissolve by the end of this year and that it can be reversed in 2023,” says the report released this Wednesday.

Why have the Afores had disabilities?

Moody’s highlights that the losses have come from price corrections in variable income instruments and valuation effects in both local and international debt instruments.

“Among the factors behind these losses are lower growth prospects, the conflict in Ukraine, the interruption of supply chains and the increase in interest rates both domestically and internationally,” he said.

Other pressures at the local level are inflationary pressures on nationally produced agricultural inputs and on energy prices derived from reconfigurations in global supply.

Returns of the Afores in 2023

The report indicates that for the losses of the Afores to overcome the bad year they are experiencing in 2022, there will need to be less uncertainty.

“The level of slowdown in the country’s economic growth, as well as the effectiveness in controlling inflation will be key in the next 12 months,” Moody’s said.

It was highlighted that despite this complex environment, the Afores continue to be the largest institutional investors and with the greatest flow of investment in the local market.

8.7 million Mexicans have not registered with an Afore and do not know that...

People who started working and have not chosen an Afore receive a return of only 3% for the contributions made by their employer, a lower level when compared to current inflation.

Last minute: Moody's warns that the Mexican peso will fall to 24 per dollar

The warning comes as Mexico's currency has weathered the "super dollar" phenomenon, which this year has pushed the euro and sterling to record lows.

Yields in the Afores: Amafore defends its commitment to workers

The Mexican Association of Afores (Amafore) said that the administrators work to give the best returns to the workers and maximize their savings.

LAST MINUTE: The Afores report losses of 200,653 million pesos only in September

The head of the Consar, Iván Pliego, points out that so far this year, the Afores have accumulated losses of 473.795 million pesos.

It's not a joke: Mexico, the country that advanced the most in the 2022...

The reforms carried out during the government of Andrés Manuel López Obrador made the country move up a category in the 2022 ranking.

More