Mexico’s Electricity Bill Rolls Back Energy Reforms and Threatens Relations with Trading Partners By Inu Manak and Alfredo Carrillo Obregon SHARE
In a bid to leave his mark on Mexico’s energy sector, Mexican President Andres Manuel López Obrador (AMLO) is rolling back reforms by his predecessor Enrique Peña Nieto that were designed to increase competition in the energy market. For years, Mexico’s energy market was in decline due to a lack of foreign investment and competitive pricing, governance challenges, capital constraints, and a drop in crude oil production. Peña Nieto sought to reverse this trend with ambitious reforms that required amending Mexico’s Constitution to allow for much needed foreign direct investment (FDI). But in his populist push, AMLO has railed against this market opening, and sought to increase the role of state intervention in Mexico’s energy markets.
contested central bank bill, while other Latin American
currencies gained footing on optimism around COVID-19 vaccines
and higher oil prices.
dollar.
the bill that critics say would force Mexico’s central bank to
accept money from drug gangs, lawmakers said, and the measure
could go to a vote on the same day. Ratings agency Moody’s warned late on Monday that the reform
would be “credit negative” for the sovereign because it would
compromise the bank’s autonomy. “If they push it through the House today, USDMXN could make
a quick move up to 20.50 as markets fret for a few days over the
By Reuters Staff
(Adds comments from Moody’s report)
MEXICO CITY, Dec 14 (Reuters) - The lower house of Mexico’s Congress on Tuesday will debate a hotly contested bill that critics say would force Mexico’s central bank to absorb money from drug gangs, lawmakers said on Monday, and the measure could go to a vote the same day.
The Bank of Mexico (Banxico) and some lawmakers, including members of the ruling National Regeneration Movement (MORENA), had pushed for debate on the proposal to be delayed until Congress begins a new session in February.
Supporters say the law would help Mexicans with poor access to the financial system, such as migrants and hospitality sector workers paid in dollars, to save cash.
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MEXICO CITY The lower house of Mexico’s Congress on Tuesday will debate a hotly contested bill that critics say would force Mexico’s central bank to absorb money from drug gangs, lawmakers said on Monday, and the measure could go to a vote the same day.
The Bank of Mexico (Banxico) and some lawmakers, including members of the ruling National Regeneration Movement (MORENA), had pushed for debate on the proposal to be delayed until Congress begins a new session in February.
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