Mexican finance minister seeks to soothe investors, reduce public debt
2024.06.04 13:14
By Noe Torres
MEXICO CITY (Reuters) – Mexican finance minister Rogelio Ramirez de la O sought to reassure investors and markets, saying on Tuesday he would stay in his current role with the incoming government and work to reduce public debt and maintaining financial discipline.
Ramirez de la O briefly spoke to analysts on a closed call, an audio of which was shared with Reuters, after a Sunday landslide election victory for the ruling MORENA party and its coalition spooked markets, tanking local stocks and the Mexican peso.
In his remarks, Ramirez de la O said he would be continuing in his role as finance minister for an “indefinite period” as part of president-elect Claudia Sheinbaum’s new government, which takes office in October. He said he will seek to “refresh” communication with credit rating agencies and investors about Mexico’s priorities, including economic stability and fiscal prudence.
Ramirez de la O said in a short statement published by the finance ministry following the meeting that the new government would seek “the reduction of debt generated each year by 2025 to levels compatible with a sustainable debt/GDP range in the medium term of around 3% of GDP.”
The minister said the new government plans to abide by the “central bank’s autonomy, adherence to the rule of law” and facilitate “national and foreign private investment.”
Markets have been volatile since the Sunday election due to the possibility the ruling coalition will secure a two-thirds super-majority, or very close, in both houses of Congress, allowing them to pass constitutional reforms unopposed.
Mexico’s peso currency clawed back on Tuesday morning some of its losses a day earlier, dipping 0.45% against the dollar after hours earlier losing as much as 2.9%. On Monday, Mexican stocks fell over 6% and the peso closed at its weakest since November, ending the session down 3.8% at 17.671 per dollar.
The minister also said the government planned to work closely with indebted state oil firm Pemex to optimize its use of its resources.
