President Black Announces that Mexican Banks Have Been Authorized to Acquire International Bank Bonds on May 24, 1950

INTERNATIONAL BANK FOR • FOR THE PBESS P~CONSTRUCTION AND DEVELOFMENT Washington FOB REtEASE Preas Release No. 186 12 Noon, Wednesday, M~y 24, 1950 Eugene B. Black, President of the International Bank for Beconstruction and Development, announced that on April 15, 1950, the Central Bank of Mexico authorized domestic and. foreign banks ope:ratine in Mexico to utilize part of their foreign exchange reserve deposits maintained with the Central Ba.nk for the acquis.ition of Int~rnat:i.onal Bank bonds. Heretofore Mexican banks were required to maintain a 25% reserve with the Central Bank against ~ll dollar de~osita and other foreign exchange liabi.lities. Under the n~w ruling one··fifth • of this reeerve now may be held in th~ !orm of International Bank secu:rities. Tne Central Bank of Mexico has purchased in the open market $1,500,000 of the International B~n~'e 2% Serial Bonds of 1950 and 25...,Year 3 's d\le July 15, 1972, for resale to banks in Mexico wisning ~o take advantage of this ruling. This is further tl;3.Ilgib:J.e evidence of ~exico's ~ooperation with the International Ban~ in broad~ning the international character of its marketing operations. l?~ev;i.ously the Bank's securities had been listed on the Stock ~change of Me~ico and rul~d eligible as investments for b~'"lks, insurance conipaniaEJ and other credit institut:l,ons • •