The International Monetary Fund (IMF) has approved a new two-year, $24 billion flexible credit line for Mexico to serve as a precautionary buffer against external risks. The new arrangement replaces a previous $35 billion line, reflecting Mexico’s reduced reliance on IMF support and improved economic resilience. This marks the country’s eleventh such arrangement since 2009, with the credit line size shrinking from a peak of $88 billion in 2017. The IMF noted that the smaller amount underscores Mexico’s stronger financial position and increased buffers. Mexican authorities plan to treat the facility as precautionary, citing sound fiscal management and reduced vulnerability to capital flow volatility. However, IMF Deputy Managing Director Nigel Clarke cautioned that economic activity remains subdued due to fiscal consolidation, tight monetary policy, and trade tensions. The IMF emphasized that the credit line will continue to support Mexico’s macroeconomic stability and bolster market confidence.