the proceeds for specific expenditure programs, like pandemic vaccination programs or sustainable and low - carbon projects. a multilateral and cooperative approach is essential for the world to face immediate and severe challenges, such as the pandemic, or other medium - and long - term challenges, like global warming. we must use the lessons learned to steer and strengthen the role and strategies of ifis to ensure that they have the sufficient resources and the appropriate instruments to help member countries navigate through uncharted territory. concluding remarks – lessons let me conclude. the covid - 19 pandemic has left profound marks on our lives. it has also left profound marks on the global economy and on our financial markets. it has also been an event that has left important lessons for policy makers. first, the crisis has made clear the importance of adopting policies to strengthen the resilience of the economy and the financial system, a condition that must be maintained, as it is indispensable to reduce the impact of the destabilizing dynamics of shocks, such as covid - 19. countries with stronger fundamentals were less affected during the worst months of the crisis, and they are leading the recovery. 4 / 5 bis central bankers'speeches second, an ample set of policy tools was needed to address the risks associated with extreme financial market volatility and to mitigate the effects of the crisis. in this regard, stronger fundamentals and a more ample policy space reinforces a virtuous circle that allows to attain better social outcomes. finally, we live in an interconnected world with significant spillovers from country to country. as such, multilateral, regional and bilateral policy tools to address adverse shocks can make a significant difference in terms of risk management, allowing to better mitigate the effects of a crisis. in this regard, further strengthening the gfsn must remain among the financial authorities ’ priorities. after all, the covid - 19 crisis has taught us the materiality of a truly global large - scale shock. hence, we should also be better prepared to have prompt and forceful global responses. thank you very much for your attention. it has been a pleasure to be here today. 5 / 5 bis central bankers'speeches

has been fueled by substantial portfolio inflows to mexico. these flows have been directed both to the equity and fixed income markets, most notably via government bond purchases. the total holdings of government securities by foreign investors have reached unprecedented levels, close to us $ 68 billion as of the end of june, more than 23 percent of the total outstanding. to date, there does not seem to be a cause for concern regarding the effects of these capital flows to mexico. such movements seem to reflect a search for higher yields, given the extremely low interest rates that prevail in the united states and other advanced countries and the relative improvement of mexico ’ s economic prospects. this search for yield occurs in the context of a mexican peso that is freely convertible and now traded 24 hours with ample liquidity. an additional favorable factor seems be the inclusion in 2010 of mexican government bonds into the citigroup world government bond index ( wgbi ), which is used as a benchmark by many index fund managers and institutional investors. as of now, there are no apparent signs of overheating in spending or the gestation of a credit or asset boom as a result of these flows, either of which could endanger control over inflation or the stability of the financial system. however, a possible reversal of these flows may translate into volatility and asset price declines, including exchange rate depreciation. yet, if such an eventuality materializes, the functioning of the economy should not be affected, provided that monetary and fiscal fundamentals remain strong, and the banking system highly liquid and well capitalized. an additional element of strength will continue to be the flexible exchange - rate system that has served as a shock absorber in previous turbulent times. in any case, the financial authorities will have to continue monitoring potential risks from various sources that may impair the functioning of the financial system, to prevent this from occurring and to act accordingly if an adverse situation emerges. this responsibility implies making progress in measuring systemic risk, strengthening the prudential regulation and supervision of the system, and perfecting the resolution mechanisms for insolvent financial institutions. challenges to price stability in mexico monetary policy in mexico has been conducted according to the constitutionally mandated primary objective of seeking the stability of the purchasing power of the national currency. to express its commitment to this mandate, since 2001 the bank of mexico has implemented its monetary policy within an explicit inflation - targeting scheme. starting from double - digit annual inflation, references were gradually reduced,