After the exchange rate broke the 20 pesos per dollar barrier This Thursday morning, analysts They expect there to be more volatility for the national currency and reached the 20.50 units per greenbackderived from the progress of the reform to Judiciary.
At the opening of the session this Thursday, the Mexican currency It was quoted at up to 20.15 pesos per dollara level not seen since the end of August 2022, according to data from the Bank of Mexico (Banxico).
According to an analysis of Monexthis pressure occurs while the markets assimilate the recent approval of judicial reform in the Chamber of Deputieswaiting for the start of discussion and vote in it Senate for next week.
Following the approval of the reform to the Judicial Branch in general and in particular in the Chamber of Deputies, the Constitutional Points and Legislative Studies Committees of the Senate of the Republic called for discussion work for next Sunday, September 8, while in the plenary session the discussion will take place on Wednesday of next week.
For James Salazardeputy director of CIBanco Analysisthis discussion in the Senate will be the one with the highest incidence in the volatility of the exchange rate in the next few days, though did not rule out external factors like the US employment data which will be published this Friday.
“This issue of reform may continue to put pressure, especially in the following days or next week, once the Senate ratifies this ruling. They are missing one vote for a qualified majority and this may become an obstacle, although we do not believe it can be stopped, but there is some speculation about it and, in the meantime, it will continue to put pressure on the Mexican currency,” commented the analyst.
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In this regard, an analysis of BASE Bank warns that during September the Exchange rate could reach 20.50 pesos per dollar.
“The upward pressure on the exchange rate is due to the greater risk aversion in Mexico, after the general and specific approval of the reform of the Judicial Branch in the Chamber of Deputies,” the financial institution said.