The Mexican peso was ‘caught’ in the nervousness of investors over the reforms to the Judiciary that Morena and his majority in Congress plan to approve in September, which increases nervousness in operators.
The depreciation of the Mexican peso against the dollar During this Friday, June 7, it was 2.65 percentor 47 cents, so the exchange rate closed at 18.36 units.
Furthermore, in the weekly cut the Mexican peso registered a loss of 8.22 percent either 1 peso and 39 cents against the greenback.
What did AMLO say today about the reform of the Judiciary?
(darkroom)
In his ‘morning’ this Friday, June 7, President Andrés Manuel López Obrador insisted that the Judiciary must be completely reformed because it is “taken over” by the “interests of a minority.”
“We must find a mechanism so that The Judiciary presents its candidates, the Legislative Branch and the Executive Branch. Let them think about 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 markets, is that they have some ministers as keys (…). “It is shameful,” he added.
Also included in the so-called ‘Plan C’ promoted by President López Obrador is the proposal to eliminate autonomous bodies, an initiative that proposes the elimination of institutions such as:
- National Institute of Transparency, Access to Information and Protection of Personal Data (INAI).
- Federal Economic Competition Commission (Cofece).
- Federal Telecommunications Institute (IFT).
- Energy Regulatory Commission (CRE).
- National Hydrocarbons Commission (CNH).
- National Council for Evaluation of Social Development Policy (Coneval).
- National Commission for the Continuous Improvement of Education (Mejoredu).
What do specialists say about weight loss?
“Will have to see how far the exchange rate depreciates. It seems to me that the levels at which it is currently found do not imply an extreme, this level can affect some, but still in a limited way,” explained Janneth Quiroz, director of economic and exchange 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 be more limited.
The dollar index (dxy) which is responsible for measuring the strength of the US currency against a basket made up of six main currencies, advances 0.80 percent, at 104.93 points. Thus, the Bloomberg Dollar Index (bbdxy) add 0.80 percent to 1,262.34 units.
At bank windows, the dollar is already sold in a price of 18.41 pesos each one, according to the data reported by Citibanamex.
Which currencies lose the most against the dollar this Friday?
The Mexican peso was not the only currency with a bad day, since the polish zloty led the losses with a depreciation of 1.56 percent. They followed the brazilian real with 1.36 percent; the chilean peso with 1.31 percent; the hungarian forint with 1.28 percent, and the czech crown 1.14 percent, to name a few.
In the money market, the yield on the 10-year bond for the United States is 4.41 percent, while the 10-year bond in Mexico remains at a level of 9.12 percent.
