The Bank of Mexico is autonomous in exercising its functions, and its main objective is to achieve stability in the purchasing power of the national currency.

Instead the government was forced to rely on domestic lenders known as agiotistas (speculators) who specialized in short-term, high-interest loans.

[6] The first formal bank organized by the government was the Banco de Avío which was formed in 1830 during the presidency of Anastasio Bustamante under the direction of the Minister of Interior and Foreign Affairs, Lucas Alamán.

Its success was confined mainly to the latter,[8] but due to ongoing political and military crises the bank was eventually closed in 1842 by President Antonio López de Santa Anna.

The new code also stipulated that all paper money had to be backed by gold or silver on deposit in the national treasury.

Due to poor management, the Monte de Piedad temporarily closed, reopening without its banking services.

The auxiliary development banks were authorized to make loans for periods up to two years for the purpose of financing industrial endeavors such as mining, manufacturing, and agriculture.

These changes had limited success, and though Limantour predicted a budget surplus for 1911, the collapse of the Porfirian regime and the intensification of the Revolution ground normal banking activity to a halt.

[5] When Huerta was forced from office, the number of banknotes issued multiplied and the population began to lose faith in paper money.

As warlords ravaged the country vying for control, they forced banks to make exorbitant loans or they looted them.

[6] The Banco de México was created on August 25, 1925, under the direction of Minister of Finance Alberto J. Pani with an official ceremony given on September 1, 1925.

[citation needed] In 1932, laws were passed that required all private banks to invest their capital in Mexico and associate themselves with Banco de México.