AMLO uncovers Victoria Rodríguez for Banxico; affirms that it will fight inflation

President Andrés Manuel López Obrador reported that he will propose Victoria Rodríguez Ceja, current Undersecretary of Expenditures, to occupy a place on the Governing Board of the Bank of Mexico, to later appoint her governor.

“We want women to participate, for this change to take place, recognizing the work that the Undersecretary of Expenditures has done, who has been acting very well, with exemplary management,” she highlighted in her morning conference.

The representative of the Executive, who has the power to nominate the members of the Governing Board, said that Rodríguez Ceja “has acted with great responsibility not to spend to spend. It is due to her that we have financial stability, that we have not resorted to additional debt ”.

The official has remained in the position since the administration began, in December 2018, and in effect has been responsible for the budget distribution.

According to the president’s perspective, the official complies with all the requirements of the Law to lead the central bank, although she does not have the curricular experience in the management of monetary policy that is highlighted in article 39 of the Bank of Mexico Law.

“There is no problem according to the requirements, who has financial experience or who has held a high position in the government linked to the Treasury,” emphasized the president.

López Obrador clarified that the official nomination will be sent to the Senate this week, and made it public 38 days before the term of Alejandro Díaz de León, the last career central banker at Banco de México.

First apparition

In her first message, after learning that it was proposed by López Obrador, Victoria Ramírez Ceja assured that, if ratified as governor of Banxico, she will fight inflation, will not touch the reserves and will respect the autonomy of the central institute.

“I will fulfill, in case of being ratified by the Senate, with the function established in the normative framework of this institution. My commitment is to fight inflation, not to touch international reserves and to comply with the autonomy of the bank ”, assured the still Undersecretary of Expenditures.

Accompanied by Rogelio Ramírez de la O, Secretary of the Treasury, Rodríguez Ceja, said she was honored to be proposed by the President to take the place of Alejandro Díaz de León at the head of the central bank and, thus, become the first woman to be governor .

“She is an honest, competent official and highly respected by all of us,” declared Ramírez de la O, in addition to ensuring that the Ministry of Finance respects the autonomy of the central institution.

Senate will vote on Tuesday

The full Senate will vote next Tuesday to ratify Rodríguez Ceja as a new member of the Banxico Governing Board, Ricardo Monreal Ávila reported.

“I don’t think there is any difficulty. I have already spoken with several coordinators and the ratification is reasonably certain; We are only waiting for the confirmation of the President of the Republic to start the entire formal process and do it very quickly so that there is peace of mind, that there is no anxiety, uncertainty, confusion or nervousness.

Five relays in the AMLO era

Rodríguez Ceja’s nomination becomes the fourth change carried out by López Obrador in the Governing Board of Banco de México, the collegiate body that directs monetary policy decisions.

AMLO has nominated deputy governors Jonathan Heath, Gerardo Esquivel and Galia Borja, right now Rodríguez Ceja and in December of next year, he will have to decide to renew Esquivel’s term or propose another official.

Andrés Abadía, economist for Latin America at Pantheon Macroeconomics, trusted that the institutional framework of the members of the Governing Board will prevail over political interests. This same perception has the analyst of the Frontier View consultancy, Alejandro Valerio, who added the experience of the deputy governors Heath, Esquivel and Borja, to consider that an independent and autonomous action of the institution will follow.

The vice president of investments at Franklin Templeton, Luis Gonzali, even took Esquivel’s public participation and arguments, to add that despite being against raising the rate in this context of inflation, “he has been very vocal in defending the Bank’s autonomy. from Mexico”.

Training outside of Banxico

Defender of austere budgets

Victoria Rodríguez Ceja arrived at the Ministry of Finance and Public Credit (SHCP) from the hand of Q4. With several previous positions in the public administration; was in charge of planning and defending austerity in the four budgets that have been presented by the government of President Andrés Manuel López Obrador.

Despite her position, the official has worked with a low profile, away from the press, but present at decisive moments, such as press conferences of the secretariat for the Public Finance and Public Debt Reports, as well as appearances in the Chamber of Deputies to explain the expense. This year she even became the first woman to deliver the Economic Package to the Senate of the Republic.

The economist has worked closely with the President since he was governor of the then Federal District, today Mexico City, and even with the departure of López Obrador, she continued to serve other heads of government, such as Alejandro Encinas, Marcelo Ebrard and Miguel Ángel Mancera, this in different positions.

Exception to the rule

The four governors that Banco de México has had in its autonomous life obtained their experience in the same central bank.

This is the case of Alejandro Díaz de León, outgoing governor, who joined the institution as an analyst to the Securities Market Studies sub-management before finishing his professional career at the Autonomous Technological Institute of Mexico (ITAM), in 1991.

His predecessor, Agustín Carstens, began his career in 1980 at Banco de México, where he held various positions in the international division of the central bank, in the economic research unit and in the governor’s office.

Guillermo Ortiz Martínez, joined Banco de México in 1977 as assistant manager and manager in the Directorate of Economic Research.

For his part, the first independent governor of the Banco de México, one of the architects of the central bank’s autonomy, Miguel Mancera Aguayo, joined Banxico in 1957 as an economist.

The four central bankers made careers at the central institute in various responsibilities.

Rodríguez Ceja will start the position on January 1, 2022 and will stand out worldwide, for being one of the few women at the head of the central bank and comes from the Undersecretary of Finance dedicated to budget management.

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