United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office General Government Division author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 1996-02-23 monographic deposited born digital 171 p. GA 1.13:GGD-96-56 https://www.govinfo.gov/app/details/GAOREPORTS-GGD-96-56 P0b002ee18038beb5 f:gg96056 DGPO 2010-08-12 2011-03-24 GAOREPORTS-GGD-96-56 machine generated eng fdlp REPORT GAOREPORTS-GGD-96-56 GGD-96-56 International economic relations Foreign exchange rates Foreign economic assistance Economic growth Foreign currency Foreign trade agreements International trade regulation Investments abroad Devaluation Foreign loans United States Canada Mexico International Monetary Fund NAFTA North American Free Trade Agreement Interagency Country Risk Assessment System Treasury Exchange Stabilization Fund Chapter Report GGD Pursuant to a congressional request, GAO examined Mexico's financial crisis, focusing on the: (1) origins of the crisis; (2) extent to which the U.S. government and the International Monetary Fund (IMF) were aware of Mexico's financial crisis; (3) U.S. and IMF response to the crisis; and (4) Treasury's use of the Exchange Stabilization Fund (ESF) to fund financial assistance to Mexico.<p/>GAO found that: (1) Mexico's financial crisis began in 1994 amid growing concern over Mexico's fiscal and monetary policies and exchange rate system; (2) although the United States expressed concern over Mexico's short-term exchange rate policies, the Federal Reserve and Treasury did not forsee the magnitude of the crisis; (3) U.S. and IMF assistance to Mexico was intended to help Mexico overcome its short-term liquidity crisis and to prevent those effects from spreading to emerging foreign exchange markets; (4) the United States pledged up to $20 billion in loans and security guarantees to Mexico under ESF, and IMF pledged $17.8 billion to Mexico under a standby arrangement to be disbursed over 18 months; and (5) the Treasury Secretary acted within his discretion by using ESF funds to provide assistance to Mexico to promote a stable exchange rate system. https://www.govinfo.gov/content/pkg/GAOREPORTS-GGD-96-56/html/GAOREPORTS-GGD-96-56.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-GGD-96-56/pdf/GAOREPORTS-GGD-96-56.pdf GAO/GGD-96-56 https://www.govinfo.gov/app/details/GAOREPORTS-GGD-96-56 Chapter Report GAO/GGD-96-56; Mexico's Financial Crisis: Origins, Awareness, Assistance, and Initial Efforts to Recover; International economic relations Foreign exchange rates Foreign economic assistance Economic growth Foreign currency Foreign trade agreements International trade regulation Investments abroad Devaluation Foreign loans United States Canada Mexico International Monetary Fund NAFTA North American Free Trade Agreement Interagency Country Risk Assessment System Treasury Exchange Stabilization Fund Volume 48 Page 337 48 Stat. 337 H. Rept. 94-1284