The president-elect, Claudia Sheinbaum, has assured that she is not concerned that the depreciation of the Mexican peso against the dollar will continue, since she considers that the exchange rate has stabilized. At a press conference this Monday, Sheinbaum assured that markets and businessmen have nothing to worry about, since their investments are safe in Mexico and she hopes they will continue to arrive.
The Mexican peso has lost 9.4% of its value against the dollar since June 2 when the electoral elections were held, since the dollar went from trading at 16.94 pesos to 18.54 pesos on Monday at noon . The markets reacted nervously to the majorities obtained by the ruling party, Morena, both in the Chamber of Deputies and the Senate, since it facilitates the approval of twenty reforms proposed by President Andrés Manuel López Obrador. As a whole, a reform of the Judiciary and the disappearance of autonomous bodies were perceived by investors as an elimination of counterweights in Latin America’s second largest economy.
Sheinbaum presented the results of a survey, carried out by two private companies and a commission within his party, to find out citizens’ perceptions of corruption among judges and magistrates. The results showed that the majority of Mexicans support the election of judges by popular vote, as López Obrador has proposed. The president will have a window during the month of September to pass the initiative with the new legislature.
Sheinbaum has denied that he is concerned that the Mexican currency will depreciate due to the result of the survey. “This is a survey and dialogues and debates about the Judiciary are coming. “There is no reason to worry about investments.” At Sheinbaum’s request, discussion forums on the controversial reform will begin this week, but it is expected that, even if it undergoes changes, it will include the election of judges by popular vote.
The exchange rate “has now stabilized at 18.50” pesos per dollar, Sheinbaum said. “The peso is a strong currency and it will continue to be a strong currency and when we enter it it will continue to be because finally the macroeconomic numbers, the responsible management of the budget, of the debt will continue. The autonomy of the Bank of Mexico will continue, that will not change,” he added.
He also referred to comments made last week by the Undersecretary of State of the United States Government, Brian Nichols, who asked Mexico that the reform not interfere with “judicial transparency that is vital for foreign investors.”
“What are they interested in? That investments are respected and that does not have to be respected,” Sheinbaum said on the subject. The president-elect reported that this Wednesday she will meet with businessmen at a meeting with the Business Coordinating Council (CCE), where she will discuss her plan for industry and development.
Sheinbaum also highlighted that under the current Administration, Mexico has received higher levels of foreign investment than under other administrations thanks, in part, to the position that Mexico has achieved in foreign trade with the United States. “In the relationship between the United States and China, Mexico is important in that framework,” said the president-elect, “investments will continue, of that I am completely certain.”
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