The Mexican peso continued to weaken as Mexico’s outgoing president — and his successor — vowed to forge ahead with some 20 constitutional changes that have rattled investors.
The depreciation of the peso is due to risk aversion in Mexico, due to the possibility of constitutional reforms being approved, experts say.
The dollar reached a new high this morning when it was listed for sale at 18.90 pesos in the Forex currency market.
The North American currency reached that exchange rate around 5:00 in the morning, and fell to 18.78 pesos after the inflation data in the US was revealed, remaining at around 18 pesos until now.
Gabriela Siller, director of economic analysis at Grupo Financiero Base, indicated through a post on the “X” network that “The depreciation of the Mexican peso is due to risk aversion in Mexico, due to the possibility that they will be approved in September constitutional reforms”.
In particular, he noted, “the reform of the Judicial Branch is of concern, because in addition to the fact that the Judicial Branch is the only remaining counterweight to the Executive Branch, it is also essential to provide legal certainty in the private sector, which could inhibit the growth of fixed investment and the arrival of new foreign direct investment”.
In exchange centers the exchange rate increased with a dollar for sale up to 18.50 pesos and for purchase up to 17, so these businesses maintain their increased profit margin since the last elections, of up to 1.50 pesos per dollar.
Claudia Sheinbaum won this month’s presidential election. But she has spent much of the time since then trying to reassure markets, while yielding not an inch on a controversial proposal to make judges and justices stand for election.
Sheinbaum claimed Tuesday that “investors have no reason to be concerned,” adding “to everyone who invests in Mexico, I say that (legal) certainty exists.”
Critics have claimed that outgoing President Andrés Manuel López Obrador wants to eliminate regulatory and oversight agencies and weaken the judicial system to reduce any checks on presidential power.
