How interesting, I was just reading that same article yesterday!<p>The article is from 2017, but Mexico has been doing the same trades still every year - for example:<p><a href="https://www.worldoil.com/news/2020/1/3/mexico-hedges-2020-crude-oil-exports-at-49-per-barrel" rel="nofollow">https://www.worldoil.com/news/2020/1/3/mexico-hedges-2020-cr...</a><p>This is from this January 2020 - they hedged at $49 per barrel... just before the coronavirus demand shock and oil price fall... another great Hacienda hedge.
The real story: “Large country buys insurance on largest asset.” Not as exciting, but more contextually accurate. As is always the case with unique or monstrous assets, the insurance mechanisms require invention.
Would be useful to know the long term profitability of this annual hedge rather than cherry picking a great year. If, hypothetically, every other year they lost a billion, then this $5B gain doesn't seem as great.