MXN: An update on the planned judicial reform – Commerzbank
Friday brought progress on the Mexican governing coalition's (MORENA) planned judicial reform. As a reminder, outgoing President Andrés Manuel López Obrador (AMLO) has been planning a judicial reform for a long time, with one of the most important points being the direct election of all judges by the people, Commerzbank’s FX strategist Tatha Ghose notes.
Judicial reform may weigh on MXN
“These efforts have failed due to the 2/3 majority required to change the constitution, but since the last elections at the beginning of June, this majority is within reach. And the ruling alliance is adamant that it will get the missing votes. At the moment we have to be prepared for the reform to be implemented.”
“The proposal that has now been submitted makes a number of changes to the original proposal - the coalition government emphasises that it has accepted some of the criticism and made more than 100 changes. One of the most important proposed changes is that the election of judges will now take place in stages, the first part probably next year, the second part in 2027.”
The proposals do not change the fact that we are critical of the basic intention of this reform. We have our doubts, which is why we continue to see the judicial reform as negative for the peso.”
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FXStreet Insights Team
FXStreet
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