The International Monetary Fund today approved a new 88 billion US dollar credit line for Mexico, replacing the existing line. The two-year flexible credit line boosts Mexico's ability to immediately deal with a potential need for liquidity, without having to request an IMF loan. The country considers the funds precautionary and does not intend to draw on them, although the IMF notes increasing risks from the potential changes to the North American Free Trade Agreement.<br/><br/>IMF Managing Director Christine Lagarde said in a statement that while Mexico's economy has proven resilient, the credit line will continue to play an important role in supporting the authorities' macroeconomic strategy by providing insurance against external risks and bolstering market confidence.<br/><br/>Mexico requested a new credit line several months early, because the existing arrangement was due to expire only a few weeks before the July 2018 presidential elections, according to the fund report.