AMLO decides to strengthen his power over Banxico

MEXICO - In Brief 24 Nov 2021 by Mauricio Gonzalez
Facts: The President withdrew former Ministry of Finance's nomination to preside over Banxico’s Board and today he proposed Victoria Martínez, the current undersecretary at the Ministry of Finance in charge of the spending division, for the post. No doubt she will be approved by the Senate before December 15.Uncomfirmed versions state that AMLO had a rift with Herrera last summer. The President wanted the Ministry of Finance to provide some resources from the tax revenue sharing scheme from the Federal Government to States that went beyond the norm, to influence state elections, last June. It seems Herrera didn’t comply with the presidential wishes, and AMLO decided Herrera could become, inconveniently for his interests, even more independent as Banxico Governor, so he decided to switch candidates. It looks like the decision was made last August and the announcement delayed until yesterday.Victoria Rodríguez is an economist with a solid educational background.She has ample experience in public finance, mainly in spending-related areas in Mexico City’s Finance Department (when AMLO was mayor of Mexico City), and followed him to the Ministry of Finance in this administration.Notwithstanding, she has very limited experience in monetary policy and financial markets, as well as in central bank management/operations (crucial responsibilities of Banxico’s Governor).Motives:Uncomfirmed versions state that AMLO had a rift with Herrera last summer. The President wanted the Ministry of Finance to provide some resources from the tax revenue sharing scheme from Federal Government to States that went beyond the norm, to influence state elections, last June. It seems Herrera did’t co...

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