Market Is a Factor in Mexico Congress’ Next Steps, Senator Says

(Bloomberg) -- Mexico’s ruling party will keep the market in mind as it moves to discuss constitutional reforms, Senate Majority Leader Ricardo Monreal said in an interview.

Most Read from Bloomberg

Next steps will be determined after President-elect Claudia Sheinbaum meets with outgoing President Andres Manuel Lopez Obrador later on Monday, Monreal said. Sheinbaum will play a key role in determining the timeline and priorities for discussion in the legislature even before she takes office in October.

A larger-than-expected win for the ruling coalition in Congress has led the peso to weaken to as low as 18.66 pesos per dollar earlier on Monday amid concerns that the administration would seek to advance key constitutional changes at a faster pace and without making alterations requested by opposition parties.

“The market is an actor that plays a role and is present in our decisions,” he said. “That’s why, even though the country needs more change, we need to express clearly that we’re not looking for either a return to authoritarianism nor an undue accumulation of power.”

Mexico’s peso strengthened 1% to a session high after Monreal’s comments. The new congress starts its legislative period on Sept. 1.

Other key points from the interview:

  • The most controversial reforms are expected to be the judiciary reform, the electoral reform, the bill on autonomous regulators and the energy reform

  • Although Sheinbaum has not yet said which ones she will prioritize, in her campaign she supported Lopez Obrador’s reforms

  • Sheinbaum will give the conversations “an appropriate pace,” dates are not yet set for when the bills could be discussed and passed

  • Sheinbaum is “very sensible” and has instructed lawmakers to be cautious

  • Ruling party lawmakers will act in coordination with the wider party and Sheinbaum

  • “Economic stability” and responsible governance are convenient for Mexico

  • “The country needs a transition process that is not abrupt, but rather, as smooth as velvet”

--With assistance from Michael O'Boyle.

Most Read from Bloomberg Businessweek

©2024 Bloomberg L.P.