6. The governance framework for the SWF should be sound and establish a clear and effective division of roles and responsibilities in order to facilitate accountability and operational independence in the management of the SWF to pursue its objectives.
The BISF is established as a Public Trust, and consequently, its governance framework is defined in the Trust Contract (“The Contract”). According to this:
• The Economic Planning Unit (EPU), which belongs to the Ministry of Finance, is responsible for overseeing that the Trust’s resources are applied for the stated purposes.
• A Technical Committee, integrated by the Undersecretary of Finance and Public Credit, the Undersecretary of Revenues and the Undersecretary of Expenditure, is responsible for i) authorizing the amount of resources to be used to fulfil the Fund’s objectives, ii) approving monthly financial statements and iii) determining the portfolio’s currency composition, among others.
• NAFIN manages the Trust and, in order to distinguish the federal resources from operations related to the BISF, may create subaccounts.
• NAFIN must make use of the Mexican Federal Treasury (hereinafter “TESOFE”) to manage the Fund’s resources.
• For the implementation of hedging programs aimed to contribute with the stabilization of the Federal Government’s revenues, the Federal Government can request the Central Bank’s intermediation (as the Financial Agent of the Federal Government) to comply with such purpose.