Mexican Finance Minister's Resignation 'Unexpected, Negative,' Says Goldman Sachs

Elias Hubbard
July 11, 2019

In the unusually strongly worded resignation note made public on his Twitter account, Urzua said the government was forming economic policy without sufficient foundation.

"Allow me to inform you that I have decided today to abandon the post of Minister of Finance and public credit", - said in a statement addressed to the President of Mexico, Andres Manuel Lopez Obrador. Urzua's departure doesn't seem to put the recent USMCA trade deal at risk, but does highlight concerns about policy decision making in AMLO's administration. I am convinced that all economic policy must be carried out based on evidence, taking care of the diverse effects these decisions can have and they must be free of all extremism.

"This was caused by influential people in the current government with a patent conflict of interests", added Urzua, without naming names.

Mexican president appointed finance undersecretary Arturo Herrera as the new minister following Urzua's resignation.

The peso lost 1% to 19.1215 per dollar at 11:56 a.m.in Mexico City.

Mexico would not stray from a commitment to run a primary budget surplus of 1 percent set by former minister Carlos Urzua and would probably set a similar target for next year, Herrera said. Herrera is well known to investors and seen as a competent economic manager.

"We are committed to changing economic policy that has been imposed for the past 36 years", Lopez Obrador said in a video message.

Other reports by Click Lancashire

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