HomeTop StoriesMexico's president says the judicial review will continue despite market turmoil

Mexico’s president says the judicial review will continue despite market turmoil

MEXICO CITY (Reuters) – Mexico’s outgoing President Andres Manuel Lopez Obrador said on Wednesday people are “mistaken” if they think his push to overhaul the country’s judiciary will be reversed amid nervousness in the markets .

Later on Wednesday, the country’s new president, Claudia Sheinbaumagain sought to allay investor concerns, praising what she described as a strong national economy while suggesting the recent decline in the peso currency was temporary.

Mexican markets have been in turmoil since Lopez Obrador’s left-wing MORENA party outperformed expectations in June 2 elections, breathing new life into stalled efforts to pass a series of constitutional reforms, including a which would replace an appointed Supreme Court, along with lower courts. with judges elected directly by the voters.

“They are wrong, respectfully, if they think that we will go back to reforming the judiciary, which is rotten and dominated by corruption, just because there is financial nervousness,” Lopez Obrador told reporters.

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The Mexican peso currency, which has performed well regionally in recent years, fell about 10% last week after Sheinbaum and MORENA’s landslide victory, weakened against the dollar as much as 2.2% in early trading on Wednesday and fell ultimately by about 0.8% on the day itself. .

Sheinbaum, a close ally of Lopez Obrador who will come to power in October, has sought to calm investors’ nerves while championing as a top priority the judicial review, which critics say will fundamentally change political independence and power will take away. with democratic checks and balances.

“The Mexican economy is solid, these are special moments and they will adapt,” she said, dismissing concerns about the peso’s recent fall.

“There is no nervousness or any problem,” she added.

MORENA Senate Leader Ricardo Monreal noted on Wednesday that lawmakers could amend or “enrich” the proposed reforms following forums planned by lawmakers to discuss them publicly. “That possibility cannot be ruled out,” he said.

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Local government bond yields also continued to rise, with the 10-year benchmark rising to 10.5%, the highest level since 2008. Eurobond spreads were little changed.

In the lower house of Congress, MORENA secured the two-thirds supermajority needed to pass constitutional reforms unopposed, while falling just short of the supermajority in the Senate.

(Reporting by Raul Cortes Fernandez, Brendan O’Boyle and Drazen Jorgic; additional reporting by Rodrigo Campos; Writing by Brendan O’Boyle; Editing by Stephen Eisenhammer, Drazen Jorgic and Alistair Bell)

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