He Mexican peso experienced a marked depreciation, reaching a price of 18 pesos per dollar amid growing fears related to the reforms proposed by President Andrés Manuel López Obrador.
The national currency weakened to 17.99 pesos per dollar, even momentarily exceeding 18 unitsrepresenting a drop of 2.87% or 50 cents compared to the previous day’s close.
This decline is mainly attributed to the markets’ concern over the possibility that the next Congress, dominated by the ruling party, approve a set of reforms considered radical, including significant changes in the judiciary and other critical areas.
Since the elections, the peso has accumulated a loss of 5.75%, aggravated by the victory of the official candidate Claudia Sheinbaum and the consolidation of the Morena party and its allies, who are shaping up to control Congress.
This prospect has worried investors, fearful that the proposed reforms will affect the country’s economic stability and governance.
The Mexican Stock Exchange also felt the impact of this political uncertainty. Although it initially registered an increase of 2.5%, it lost much of these gains to close with a slight increase of 0.12%.
Among the most affected stocks, those of Grupo Financiero Banorte recorded the largest drop, losing 3.85% and trading at 149.03 pesos, while those of the Regional bank led the gains, rising 5.13% to 139.76 pesos.
Political uncertainty is compounded by the possibility of credit rating cuts on Mexico’s sovereign debt.
The Moody’s rating agency announced that it will review the country’s rating after the publication of the 2025 Economic Package, paying special attention to the reforms sent to Congress.
This announcement has increased concern among investors, who see potential risks to Mexico’s macroeconomic stability.
Morena’s leadership in the Chamber of Deputiesrepresented by Ignacio Mier, has confirmed that the debate on constitutional changes could begin as early as September, when the new legislature takes office.
Gabriela Sillerdirector of economic analysis at Banco Base, has indicated that the approval of these reforms represents an obvious risk, given the size of the majority of Morena and its coalition in Congress, and the potential impact on the last counterweight of the executive branch, the power of attorney.
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