Interest rates
(Quarterly average)
Official ECB rate
Euribor 3 months
Euribor 1 year
Spain 10-year bond
USA 10-year bond
USA Federal rates
TIIE (Mexico)
principal economic indicators point to a smaller decline
in the second quarter. The Federal Reserve held the base
rate at all-time lows (between 0% and 0.25%) and the
Administration presented a plan to reform regulation of
the financial system. The aim is to provide the Federal
Reserve with greater supervisory powers, to reduce the
risk of financial instruments and to protect the
consumer. Likewise, instruments to inject liquidity into
the banking system have been kept in place.
The Mexican economy continued to suffer a sharp
adjustment during the second quarter with a big drop in
activity although the confidence indices reveal signs of a
certain degree of recovery in recent months. These
conditions led the central bank to cut interest rates and
in June the average monthly TIIE at 28 days was
5.26%.
Although South America is still outperforming other
regions, it suffered from a drop in activity in the first
quarter of 2009. This was due to lower internal and
external demand. Inflation fell and all central banks
Exchange rates (1)
Mexican peso
U.S. dollar
Argentine peso
Chilean peso
Colombian peso
Peruvian new sol
Venezuelan bolivar fuerte
(1) Expressed in currency/euro.
2Q 1Q
1.10 1.92 3.28 4.24 4.00 4.00
1.31 2.01 4.24 4.98 4.86 4.48
1.67 2.22 4.38 5.37 5.05 4.48
4.16 4.17 4.16 4.65 4.54 4.17
3.30 2.70 3.20 3.84 3.86 3.65
0.25 0.25 1.07 2.00 2.08 3.19
5.89 8.00 8.71 8.49 7.96 7.93
30-06-09
2009 2008
4Q
that held monetary policy meetings in the period cut
interest rates.
Regarding end of period exchange rates, the dollar
continued to appreciate against the euro (up 11.5%) but
at a slower pace than in the first quarter. Conversely,
the Mexican peso (down 12.5%) depreciated faster than
the first quarter. The performance of other currencies
that affect the Group’s financial statements was varied.
The Argentine and Colombian pesos fell 10.3% and
0.6%, respectively. The Chilean peso, Peruvian nuevo
sol and Venezuelan bolivar fuerte appreciated 9.6%,
9.9% and 11.5%, respectively.
3Q
Average exchange rates mostly deteriorated year-on-year.
The Mexican peso fell 12.0% against the euro, the
Colombian peso fell 9.3%, the Chilean peso 8.5% and the
Argentine peso 1.4%. The Venezuelan bolivar fuerte and
the US dollar appreciated 14.8% and the Peruvian nuevo
sol rose 5.5%. As a result exchange rates have a negative
effect on the year-on-year comparisons of the income
statement amounting to about two percentage points.
Year-end exchange rates Average exchange rates
Δ% on
30-06-08
Δ% on
31-03-09
18.5536 (12.5) 1.1 3.7 18.4481 (12.0)
1.4134 11.5 (5.8) (1.5) 1.3328 14.8
5.4133 (10.3) (6.6) (9.1) 4.9342 (1.4)
747.94 9.6 3.6 18.4 781.25 (8.5)
3,048.78 (0.6) 11.9 2.5 3,095.98 (9.3)
4.2572 9.9 (1.2) 2.6 4.1357 5.5
3.0350 11.5 (5.8) (1.5) 2.8619 14.8
Δ% on
31-12-08
2Q09 GROUP INFORMATION
Relevant events
2Q
1H09 Δ% on
1H08
1Q
5
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