Friday, January 27, 2023

Banxico is ‘complete’: the appointment of Omar Mejia as deputy governor has been approved

sacrifice of permanent commission The Congress of the Union approved this Wednesday the appointment of Omar Mejia Castellazo as deputy governor Bank of Mexico (Banxico),

Got 24 votes in favor of the economist, one against and 10 avoiding, After the vote, he protested in his new position in the session hall of the Legislative Palace of San Lazzaro.

The chairman of the board of directors, Santiago Creel, informed that Omar Mejia Castellazo will remain in this position until December 31, 2030. Mejia will take over the position left by Gerardo Esquivel.

The next meeting of the Banxico Governing Board is on February 9, in which the institution is expected to raise the interest rate again. Experts believe that the hike will be of 25 or 50 basis points.

with this, four out of five members The following have been appointed to the Governing Board by President Andrés Manuel López Obrador: Governor Victoria Rodríguez; and Deputy Governors Jonathan Heath, Galia Borja and Omar Mejia.

The ‘face’ of Banksico board raises doubts

Although the wisdom of the members of the governing board of Banksico is not questioned, the problem is that they project little market experience And this could affect confidence in the autonomous body, explained Luis Gonzales, co-director of investments at Franklin Templeton Mexico.

“If the confidence in the Central Bank is lost, then all its instruments stop working. What worries me is the perception of the investing public that Governing Board faces They don’t have the right experience. Maybe lack of trust in the institution bring more problems,” he said.

The analyst pointed out that the concern is not in the technical sense, as each member of the Banksico Governing Board has a large and trained team that supports them when discussing the monetary course.

However, for Years of Experience within the Ministry of Finance and Public Debt and at Banksico, deposit 45 years With the approval of Omar Mejia. Experience has a downward trend after reaching a peak of 157 years in 2017.

“This is where you have to be very careful in projecting that confidence, autonomy And it is free to decide so that the general public perception is favorable once again,” he said.

With information from Ana Martinez

Nation World News Desk
Nation World News Desk
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