Use of the Exchange Stabilization Fund to Provide Loans and Credits to Mexico

As part of an international financial support package for Mexico, the President and the Treasury Secretary have the authority under section 10(a) of the Gold Reserve Act of 1934 to use the Treasury Department’s Exchange Stabilization Fund to provide loans and credits to Mexico in the form of (i) short-term currency “swaps” through which Mexico will borrow U.S. dollars in exchange for Mexican pesos for ninety days; (ii) medium-term currency swaps through which Mexico will borrow U.S. dollars for up to five years; and (iii) guaranties through which the United States will backup Mexico’s obligations on government securities for up to ten years.