President-elect Sheinbaum's Reforms Spark Market Reactions

Mexican President-elect Claudia Sheinbaum announced she will discuss proposed constitutional reforms, including a judicial overhaul, before the next congressional session. This announcement caused the peso to weaken by nearly 2% against the U.S. dollar. The reforms include eliminating key regulatory agencies and introducing new social benefits.

Mexican President-elect Claudia Sheinbaum said on Monday that she would put up for discussion proposed constitutional reforms, including a judicial overhaul that has spooked markets, before the next congressional session kicks off. As Sheinbaum was speaking in a press conference following a meeting with outgoing President Andres Manuel Lopez Obrador, the peso weakened by nearly 2% against the U.S. dollar in international trading.

Lopez Obrador in February proposed a slew of constitutional reforms, which would also eliminate key regulatory agencies and introduce new social benefits. At the time they

did not cause market jitters, but investors sounded the alarm as the ruling coalition honed in on a congressional super-majority needed to pass constitutional reforms in the June 2 election.