Mexican reserves will protect in election campaign

"The (Mexican) Treasury has enough reserves to cover all of its foreign obligations over the next two years, which constitutes strong insurance against capital flight and mitigates against ... the risk of a run on the currency should the rhetoric or passions of a presidential election year evolve in a way that might otherwise undermine market confidence," Dallas Federal Reserve Bank President Richard Fisher told a conference on U.S.-Mexico cross-border shopping.

Fisher said the closeness of the presidential race meant "significant passions" would no doubt be expressed.

"Globalization has become a major force for disciplining public policy, both for politicians and for central bankers," the Dallas Fed chief said. "Inflation rates have converged at a lower level worldwide over the past quarter century, in part because nations strive to avoid the disruptions that occur when capital flees for safer and less-inflationary havens."