Mexico City.- The signs that Claudia Sheinbaumpresident-elect of Mexico by Morenasent since the election day, are not enough to calm the prevailing nerves, and In five days the peso fell 8% before him fear of the markets and investors to the reform of the Judicial Branch, as announced by AMLO, and with it the elimination of counterweights.
And it is that following the announcement by President Andrés Manuel López Obrador that Soon Morena and allies will have a majority in the Congress of the Union The reforms to the Judicial Branch will be approved in Septemberthe Mexican peso was caught in the nervousness of investorswhich increases the concern.
Therefore, in these five days Since the results of the presidential elections were announced, the value of the Mexican currency has plummeted. 7,9%although in the weekly cut The Mexican peso had a loss of 8.22%.
How much was the dollar sold for today, Friday, June 7, 2024?
Near to noon this Friday, June 7he The dollar was sold at 18.36 pesoswhich consolidates its worst week since 2020 when it hit the pandemic.
Thus, the depreciation of the Mexican peso once morest the dollar today was 2.65%or 47 cents, so the exchange rate closed at 18.36 units.
In addition, in the weekly cut The Mexican peso recorded a loss of 8.22% o 1 weight with 39 cents once morest the greenback.
Why are markets and investors worried?
Which the reason for nervousness of markets and investors? The ease with which the ruling party will be able to pass twenty controversial reforms in September.
About, Gabriela Siller Pagazadirector of Economic Analysis at Grupo Financiero BASE, indicates that
“These reforms remove counterweights to the Mexican economy and obviously They deteriorate the environment for doing business“.
“Now the Mexican peso might head towards the 18.50 pesos per dollar This is the scenario we predicted before the elections if Congress and the Presidency remained in the hands of a single party, as happened and in the face of the constitutional reforms that generate so much fear.”
Gabriela Siller Pagazaanalyst
To this we add that Claudia Sheinbaum, from the Morena party, receives a country with extreme debt of 2.2 billion pesoswell one poor management of public money It is the inheritance that leaves Andres Manuel Lopez Obrador.
Alta Gracia Gómez Sierra, advisor to the new president, assured with aplomb in an interview with López Dóriga this Friday, June 7, that, although they were not consulted regarding acquiring a large debt, “Mexicans will have to pay for it” that debt.
What did AMLO say on June 7 regarding the reform of the Judicial Branch?
In his morning press conference on Friday, June 7, López Obrador insisted that the Judiciary must be completely reformed because it is “taken over” by the “interests of a minority.”
“Let a mechanism be sought for that the Judiciary present its candidatesthe Legislative Branch and the Executive Branch. Let them think regarding it because it is convenient for the country, if things have gone well for them it is because corruption has not been allowed,” he mentioned.
“When I started to see what There was nervousness in the marketsis that they have some ministers as key chains (…). It is shameful,” he added.
“Justice is above the markets.”
Andres Manuel Lopez Obrador
In the so-called Plan C promoted by Andres Manuel There is also the proposal of remove from autonomous organsan initiative that proposes eliminating institutions such as:
- National Institute for Transparency, Access to Information and Protection of Personal Data (Henna).
- Federal Economic Competition Commission (Cofece).
- Federal Telecommunications Institute (IFT).
- Energy Regulatory Commission (CRE).
- National Hydrocarbons Commission (CNH).
- National Council for the Evaluation of Social Development Policy (Coneval).
- National Commission for the Continuous Improvement of Education (Mejoredu).
What do experts say regarding weight loss?
“Will have to see to what extent the exchange rate depreciates. It seems to me that the current levels do not imply an extreme, this level may affect some, but still in a limited way.
Janneth Quiroz, director of economic and exchange rate analysis at Monex.
The specialist added that seeing so much volatility in the exchange rate This is what generates uncertainty going forward.so investors will become more cautious, causing investments to also become more limited.
The dollar index (dxy) which measures the strength of the US currency once morest a basket of six major currencies, rose 0.80 percent, at 104.93 points.
Thus, the Bloomberg Dollar Index (BBDXY) adds 0.80 percent to the thousand 262.34 units.
At bank windows, the dollar is already sold at a price of 18.41 pesos each, according to data reported by Citibanamex.
Related
#falls #days #due #fear #reform #Judicial #Branch
2024-07-11 15:54:29
