Urzúa resignation stirs new doubts about AMLO economic policies

Urzúa resignation stirs new doubts about AMLO economic policies

Capital Markets Corporate & Sovereign Strategy People Mexico

The abrupt resignation of Mexican Finance Minister Carlos Urzúa raised new concerns among investors about the economic policies of President Andrés Manuel López Obrador.

In a strongly worded letter of resignation, Urzúa cited his disagreements with the administration's economic policies. The pesos weakened sharply on the news.

López Obrador selected Deputy Finance Minister Arturo Herrera to replace Urzúa.

Alberto Ramos, chief Latin America economist at Goldman Sachs, cautioned that investors should now focus on potential signs of more unorthodox/interventionist economic policy-making and weakening fiscal discipline in the AMLO administration. 

In a statement, Moody's said it expected investor uncertainty, but added that "the appointment of Sub-secretary Arturo Herrera – a government official recognized for his technical capacity – as the new secretary will help mitigate immediate investor concerns and the potential impact on the financial markets."

 

 

The news that moves markets

Read the day's transactions and rumors right in your inbox.

Start free trial