From the WSJ: The Mexican government is introducing a new law requiring Mexicos central bank, Banxico, to purchase large quantities of U.S. paper currency (at least $5 billion each year). The government argues that this is a social reform to help migrants with U.S. dollars in cash or workers in the tourist trade that receive U.S. cash as tips. The law was approved this week in the Senate and is now before the lower house of Congress. The Bank of Mexico, one of the most orthodox in Latin America, has been a pillar of Mexicos financial stability since it was granted autonomy in 1994 after a series of fiscal crises and peso devaluations that devastated the economy. The Central Banks President adamantly opposes the new law. Why might that be? (hint: think reserves, MB, M1...)