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López Obrador has appointed a new finance minister and a senior central bank

Mexican President Andrés Manuel López Obrador has appointed Rogelio Ramírez de la O, an unskilled public service adviser, to replace Finance Minister Arturo Herrera, who is being promoted to run the country’s largest bank.

With the help of these two officials, López Obrador praised Ramírez de la O in video Wednesday as “the master of the economy. . . knowledgeable, deep ”.

Ramírez de la O, 72, is the director of Ecanal, a Mexican secret consultant, and holds a degree in Cambridge. He has been a long-time ally of his and has been appointed Minister of Finance if López Obrador wins the 2006 and 2012 elections.

He declined to be invited, however, to take part in the López Obrador finance term when he becomes President in 2018.

Some researchers are skeptical. “They have no real knowledge,” said Eduardo Suárez, vice president of Latin American finance at Scotiabank.

The peso eased slightly after the announcement. Mexican financial markets strengthened this week following mid-Sunday elections, according to López Obrador failed to hold its share of two-thirds in Congress, denying him the power to change the law of his own free will.

Ramírez de la O should not oppose López Obrador economic vision, especially in power, when the dictatorial President favors oil-based companies and financial institutions.

López Obrador also said that there will be no change in the most important things: no debt, no tax or electricity price increase, and “the poor come first”.

That means they will “keep fighting,” says Gabriela Siller, chief financial officer at Banco Base. López Obrador has reduced costs to the bone and ruined rainy days to pouring wealth into the pension, education and construction projects.

However, the Mexican economy is From Covid-19 and is expected to grow to 6.5% this year, falling 8.5% in 2020.

“If he takes two and a half years under the presidency, Rogelio needs to know the game system so that people can spend money wisely,” said Alonso Cervera, a Latin American economist at Credit Suisse. “He must also take into account the president’s views on energy issues.”

Herrera said Ramírez de la O was due to formulate a budget, which was due in September. What is expected is a change in the tax system, in which major government sources will not have the resources or the inheritance tax.

Alejandro Díaz de León, the central bank governor, is due to resign in December. López Obrador says he has announced his replacement to avoid laughter in the marketplace.

If approved by the Senate, Herrera – who counts former Federal Reserve chairman Ben Bernanke on key issues – ends up finishing a non-Mexican group at the central bank board. López Obrador had stressed the need for a “financial expert” to lead.

Herrera is well-known to investors, but his proximity to the president makes it possible for him to defend his independence from the central bank. He also said he hopes to be in his current place for about another month.

Díaz de León defended himself last year when lawmakers pushed for a law that would have been forced the central bank to take dollars Banks were unable to return home.

“I think Herrera has shown ingenuity, and has led the market to trust,” said Suoti of Scotiabank. He added: “He has to work hard to show that he has the right to self-determination from the government.”

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