# Dollar Exchange Rate Unrelated to Judicial Reform, Sheinbaum Asserts
Claudia Sheinbaum Pardo, the president-elect of Mexico, emphasized on August 28, 2024, that the U.S. dollar’s exchange rate against the Mexican peso is not influenced by the ongoing judicial reform. She further assured that Mexico’s economy remains robust.
Following a meeting with the Morena parliamentary group in the Senate’s LXVI Legislature, which is set to begin session on September 1, 2024, Sheinbaum defended the judicial reform proposed by President Andrés Manuel López Obrador. She refuted claims that the reform jeopardizes democracy and the rule of law.
Sheinbaum met with President López Obrador and the Secretary of Finance and Public Credit, Rogelio Ramírez de la O, the day prior at the National Palace to review the Federal Expenditure Budget (PEF) for 2025.
“The Ministry of Finance has prepared various scenarios with differing peso-to-dollar values, but public finances are protected, and there is no cause for concern,” stated Sheinbaum. She reiterated that the dollar exchange rate is entirely unrelated to the judicial reform.
“Our economy is very strong,” she insisted, noting that there is no reason for increased tension between Mexico and the United States over the reform. “Electing judges and magistrates by popular vote has always been a part of the narrative, which indicates a mandate from the people who showed their preference during the campaign,” she explained.
Sheinbaum dismissed concerns that the reform endangers democracy or the rule of law, emphasizing that it aims to strengthen justice in the country. “The United States claims intervention concerns due to the [United States-Mexico-Canada Agreement], but the judicial power is not mentioned in the agreement, so their intervention is unfounded.”
On August 27, 2024, the Center for Economic Studies of the Private Sector (CEESP) released an executive economic analysis highlighting the uncertainty surrounding the economic and business environment due to the approval of “Plan C”.
According to CEESP, a one percentage point decrease in private investment could result in a 0.3 percentage point reduction in GDP growth, directly impacting the creation of 200,000 jobs.
CEESP also noted that the Economic Commission for Latin America and the Caribbean (ECLAC) revised Mexico’s growth forecast to 1.9% for 2024, down six-tenths from the previous estimation. For 2025, ECLAC projects 1.4% growth, aligning with predictions from private sector specialists expecting lower growth next year.
CEESP’s analysis underscored that the realization of investment promises hinges on the guarantees offered by Mexico, which could be influenced by the judicial reform. Additionally, the potential removal of autonomous constitutional bodies by a qualified majority in Congress might affect perceptions of the rule of law, creating business uncertainty.
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## Secondary Article: President Lopez Obrador’s Judicial Reform Under Scrutiny
In recent news, President Andrés Manuel López Obrador’s proposed judicial reform, known as “Plan C,” aims to overhaul the system by introducing measures like the popular election of judges and magistrates. While touted as a means of increasing democracy and accountability, the reform has faced significant backlash both domestically and internationally.
Economic think tanks, such as the Center for Economic Studies of the Private Sector (CEESP), express concerns that the reform could erode the independence of the judiciary, potentially discouraging foreign investment due to perceptions of weakened rule of law. Critics argue that such perceived instability could stunt Mexico’s economic growth and lead to job losses.
Meanwhile, López Obrador’s administration has remained steadfast, asserting that the reform is crucial for ensuring justice and aligning the judiciary with the public’s will. The debate continues to polarize opinions as stakeholders await further developments and concrete outcomes of the reform.
For daily updates on this evolving story and more, visit TJGringo.com.