The president of Mexico confuses the markets with the appointment of a central bank

The president of Mexico shocked the financial markets on Wednesday by appointing an anonymous financial analyst to head the country’s largest bank, which has kept the peso low since March.

The announcement came just days after the shocking news that President Andrés Manuel López Obrador had been heard. removed the one who had already been elected Arturo Herrera – formerly finance minister best known to investors.

At a press conference this morning, López Obrador did not elaborate on his change but tried to allay his fears of interfering in banking.

“We have shown with certainty that we respect the independence of the Bank of Mexico,” he told reporters. “There has been no disruption by the government, and the finance ministry in the elections of the Bank of Mexico.”

The Mexican peso weakened sharply on the index, down 1.8 percent against the US dollar to sell the 21.6 discount on the reserve currency. The video made the peso the cheapest currency on the market on Friday, according to Bloomberg data.

Victoria Rodríguez Ceja, who spent government money during a very difficult time, does not have it financial plan but is a long-term financial agent in government and federal.

Public spending cuts are an important part of López Obrador’s government, and they are considered to be closely linked to the fight against the plague. chicks.

“The market is very cautious because we do not know [Rodríguez Ceja’s] Lower prices, especially in the sense of passing or not, “says Gabriela Siller, chief of economics and finance research at Banco Base.” She was not a nominee.

If approved by the Senate as expected, Rodríguez Ceja will be the first woman to run a central bank. His appointment may also mean many of the five bank governors will be women.

The election comes at a time of crisis for the central bank, as inflation in the country continues to grow – a testament to policymakers around the world. New figures from Mexico’s INEGI statistical agency Wednesday show that inflation in the first half of November rose 7.05 percent from the previous year, the largest increase in 20 years.

In an effort to reduce inflation, the Bank of Mexico has raised prices in the last four consecutive meetings.

Herrera – previously elected – was seen by the markets as more rigorous than outgoing governor Alejandro Díaz de León. Although Rodríguez Ceja’s opinion is not clear, the final rise was taken by a 4-1 vote, meaning that his vote would not change the new mindset in the short term.

The unexpected change of nominee comes the same week as the President issued the directive mega fast project, moving opponents – and lawyers – said it was illegal, promising to bring legal difficulties.