## Exchange Rate of Dollar Unrelated to Judicial Reform, Clarifies Sheinbaum; It’s a “Small Percentage”, She Adds
**By: Carlos Álvarez Acevedo**
**August 28, 2024**
Tijuana – The President-elect of Mexico, Claudia Sheinbaum Pardo, on August 28, 2024, emphasized that the exchange rate of the U.S. dollar against the Mexican peso is not influenced by the proposed judicial reform. She also reassured that Mexico’s economy remains “very strong.”
During a meeting with the parliamentary group of her party in the Senate’s LXVI Legislature, set to commence on September 1, 2024, Sheinbaum reiterated her support for President Andrés Manuel López Obrador’s judicial reform. She dismissed claims that the reform would endanger democracy and the rule of law.
A day before her Senate address, Sheinbaum met with President López Obrador and the Secretary of Hacienda and Public Credit (SHCP), Rogelio Ramírez de la O, at the National Palace to discuss the Federal Expenditure Budget for 2025. She stated, “The Secretariat of Hacienda has several scenarios with different values of the peso against the dollar, but public finances are safeguarded; there is no problem.”
Sheinbaum insisted that the dollar’s exchange rate had no correlation with the judicial reform, save for a negligible percentage. “Mexico’s economy is very strong. There should be no additional tension with the U.S. government over this matter,” she added.
The President-elect highlighted that the proposal for the popular election of judges and magistrates had always been on the table and that the overwhelming electoral victory provided a clear mandate to fulfill campaign promises. She refuted concerns that democracy or the rule of law would be compromised, asserting that the reforms would actually enhance justice in Mexico and that the matter was a domestic issue unrelated to international treaties.
On August 27, 2024, the Center for Economic Studies of the Private Sector (CEESP) released an executive economic analysis expressing uncertainty in the economic and business environment due to the approval of the “Plan C.” The analysis pointed out that a one-percentage-point reduction in private investment could cut GDP growth by 0.3 percentage points and potentially affect the creation of 200,000 jobs.
The CEESP report also mentioned updated forecasts from the Economic Commission for Latin America and the Caribbean (ECLAC), which revised Mexico’s growth prediction to 1.9% for 2024, a significant reduction from prior estimates. For 2025, ECLAC projected a growth rate of 1.4%, aligning with private sector economists’ expectations of slower growth.
The CEESP noted that investment promises would rely on the guarantees provided by Mexico, which could be impacted by the proposed judicial reform. Furthermore, concerns were raised about the majority in Congress and potential elimination of autonomous constitutional bodies, which might affect perceptions of the rule of law and generate business uncertainty.
—
### Additional Article: Economic Uncertainties Continue Amid Judicial Reform Debates
In recent developments, Mexico’s economic landscape has been marked by ongoing debates around the judicial reform proposed by President Andrés Manuel López Obrador. Market analysts continue to express concerns regarding the potential impacts on foreign and domestic investments.
According to a recent report by Bloomberg, several international financial institutions have issued caution regarding Mexico’s future economic stability. The reform’s implications on the judicial system could alter investor confidence, influencing long-term investment decisions.
Reuters also reported that the exchange rate volatility of the peso against the dollar has not shown significant deviations directly attributed to the judicial reform discussions. Analysts attribute current fluctuations to broader global economic factors, including the U.S. Federal Reserve’s monetary policy and geopolitical tensions.
Economists from the Mexican Institute of Finance Executives (IMEF) have suggested that while judicial reforms aim to increase transparency and accountability, they could lead to short-term uncertainties. The implementation and reception of these reforms by both national and international stakeholders will be critical in shaping Mexico’s economic trajectory.
For more updates on Mexico’s economic and political landscape, stay tuned to TJGringo.com.