Capital Account Items

International reserve net has been negative for years 2001-2005, so Mexico is importing securities from other countries. There is a net capital inflow because the rest of the world is investing more in Mexico, than Mexico is investing abroad. Mexico borrows from other countries, more so long term than short term, in the form of foreign direct investment from abroad. Mexico has been investing abroad as a FDI but it has been considerably less than capital inflow.