BMV and Biva react to nomination for Banxico

The Mexican stock exchanges operated with volatility this Wednesday, ending in negative territory, after the announcement about the nomination of Victoria Rodríguez Ceja, current Undersecretary of Expenditures of the Ministry of Finance, as the next governor of the Bank of Mexico (Banxico).

The S & P / BMV IPC, the main index of the Mexican Stock Exchange (BMV) closed down 0.52% at 50,848.03 units, cutting the 1.23% gain from the previous session.

The FTSE-BIVA, of the Institutional Stock Exchange (Biva), ended with a decrease of 0.47%, at 1,047.70 points.

María Ariza, CEO of Biva, explained that unexpected news often generate volatility and uncertainty in the stock market. “Unforeseen warnings, which are not expected, cause uncertainty; however, the announcement by President Andrés Manuel López Obrador regarding the autonomy of Banxico continues to be a priority for him and his administration ”.

In a virtual conference on the occasion of the inaugural issue of Banco Compartamos social bonds, María Ariza trusted that with Rodríguez’s ratification, the autonomy of Banco de México will remain.

He asked to give “the benefit of the doubt” to the nomination because Victoria Rodríguez’s public career is remarkable.

However, he stressed that one of the most relevant challenges for the central bank is to control inflation, which has had a strong rebound.

“Let’s give the benefit of the doubt. I believe that the trajectory of Victoria Rodríguez is remarkable and we believe that the Banxico Governing Board has a relevant role. There is a lot of experience ”, considered Ariza.

“Inflation for the first half of November at 7.05%, the highest in more than 20 years, but still on a clear upward trajectory. Worrying, ”wrote the deputy governor of Banxico, Jonathan Heath, on Twitter.

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