MEXICO CITY, Aug 13 (Reuters) – Mexico is on track to mark a second year of record foreign capital outflows from the country’s sovereign debt market, with more than $10 billion having left so far.

Persistent high inflation, a fresh wave of COVID-19 and uncertainty created by government policy decisions have dampened appetite for Mexican debt.

Some 202 billion pesos ($10 billion) in capital left the market during January-July, compared to 257 billion pesos for all of 2020, central bank figures show. In July alone, the exodus hit 67.5 billion pesos.

“(The infections) have significantly increased risk aversion in our country,” said Janneth Quiroz, deputy director of analysis for brokerage Monex.

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