The Mexican peso lost more than 30 centavos against the dollar after the Constitutional Points Commission of the Chamber of Deputies approved the bill that paves the way for the discussion of the judicial reform.
The Mexican peso depreciated sharply this Tuesday. The local currency dropped by more than 30 centavos against the dollar after the Constitutional Points Commission of the Chamber of Deputies approved the bill that sets the stage for the discussion of the judicial reform in September.
The exchange rate closed the day at 19.7131 pesos per dollar. Compared to yesterday’s figure of 19.3617, according to data from the Bank of Mexico (Banxico), this movement represented a loss of 35.14 centavos, equivalent to a 1.82 percent decrease.
The dollar’s price fluctuated within a broad range, with a high of 19.7490 pesos and a low of 19.3507. The Dollar Index (DXY) of the Intercontinental Exchange, which measures the U.S. currency against six major counterparts, fell by 0.28% to a level of 100.57 units.
Despite a moderate decline in the dollar against its main peers, the peso lost ground and led the declines among emerging market currencies. Since Friday, when trading closed at 19.0718, the peso has lost 64.13 centavos or 3.36 percent.
USD/MXN
Analysts have criticized the judicial reform pushed by Morena, which includes major changes such as having more than 7,000 judges, magistrates, and ministers elected by popular vote, raising significant concerns.
Representatives from the United States and Canada have expressed concern over this reform. President López Obrador stated in the morning that relations with the embassies of those countries are “on hold” following their comments on the matter.
Not only have local institutions and U.S. government representatives expressed concern about the reform. On August 21, the U.S. bank Morgan Stanley recommended its clients underweight investments in Mexico.