In the final hours of the exchange market session yesterday, the exchange rate jumped up to 18 pesos per dollar. This sudden change occurred after a day of stability and was triggered by an announcement made by congressmen from the majority political force that they plan to introduce a package of 18 constitutional and legal reforms in September, including changes to the Judiciary.
This announcement came after Morena and its allies secured a qualified majority in the new Congress following the recent election. President Andrés Manuel López Obrador had presented a package of constitutional reforms on February 5, which included changes to the Judiciary, electoral authority, and autonomous bodies. The news of Morena’s proposals gaining traction in the new Congress, combined with their absolute majority following the vote, caused national and foreign financial market operators to react.
The Mexican currency operated steadily at the beginning of the session on Thursday, awaiting US employment data and the Federal Reserve meeting next week. However, it surged to nearly 17.97 per dollar after 1:00 p.m. Mexico City time, following statements made by Morena’s coordinator in the Chamber of Deputies regarding September’s proposed reforms. The immediate response reflects investor concerns about diluting counterweights and weakening Mexico’s institutional framework. This volatility is expected to continue until
