20.3 C
New York
Thursday, May 26, 2022

Situation of Ukrainian grain exports worsens day by day: Agriculture Minister

- Advertisement -
- Advertisement -

EFE Videos Latin America

López Obrador and banking presume stability in convention surrounded by shakes

Acapulco (Mexico), March 24 (EFE) .- The Mexican Banking Convention returned this Thursday after two years of pandemic to Acapulco, where the bankers and President Andrés Manuel López Obrador boasted of “stability” in the midst of shocks, such as the war in Ukraine and the controversy over the autonomy of the Bank of Mexico (Banxico). “I express my optimism for the favorable situation that prevails in our country, I can affirm that there is economic and social stability, as well as tranquility and governability,” said López Obrador at the inauguration of the 85th Banking Convention. THE CONTROVERSY THAT MARKED THE EVENT The president participated in the event after a day marked by the controversy that he created by breaking all precedent in his morning press conference, where he previously revealed that Banxico caused the 50 base point rise in the interest rate, up to 6.50%, Given the criticism from analysts and opponents, who accused him of violating the autonomy of the central bank and violating the confidentiality required by law, the president offered an apology to the governor of Banxico, Victoria Rodríguez Ceja, and alleged he was confused. I had made it public and this morning I spoke about it, but I want to tell you that I reaffirm my commitment to respect the autonomy of Banco de México”, she justified. The leader of the bankers, Daniel Becker, asserted in the morning that “he did not see any risk” for Banxico’s independence, but in the afternoon he asked for “certainty” before the president, although without referring directly to the issue. “Dear President, help us create conditions of trust and certification and translate them into economic growth. It is the output formula. Let’s work together to strengthen the institutions that are the pillars of this activity”, requested the president of the ABM. After the claim, López Obrador promised that “the rules in the management of banking policy will not change”, that “new Regulations or controls and an authentic rule of law will continue to prevail.” THE SHADOW OF WAR The Banking Convention sought to leave behind the covid-19 crisis, which has left more than 322,000 deaths in Mexico, the fifth highest figure in the world, in addition to a historical contraction of 8.2% of the gross domestic product (GDP) in 2020 with a rebound of 4.8% in 2021. But the representative of the ABM, which brings together the leadership of more than 50 financial institutions, acknowledged that the invasion of Russia in Ukraine almost a month ago has reduced growth expectations for Mexico in 2022 to a range of between 2.4% and 2.9%. Even so, when asked by Efe, he asserted that the Russian invasion has not had “any” concrete impact t or in the Mexican financial system, which shows a “robustness” for having almost 7 billion pesos (almost 350,000 million dollars) in its portfolio. “None yet, the only thing we have observed are price increases, but today we have not observed any impact on the quality of the portfolio, or on funding, or on the liquidity of the markets,” Becker said. The governor of the Bank of Mexico, who evaded questions from the press, warned that the war leaves a “more complex environment” of national inflation, which is above 7% per year at its highest levels in 20 years. However, she echoed the arguments for the soundness of the Mexican banking sector. “The tightening of monetary and financial conditions at a global level constitutes a risk for national financial markets, however, until now they have shown an orderly behavior, albeit with some episodes of volatility,” said Rodríguez Ceja. YEAR OF CHALLENGES AND OPPORTUNITIES The Mexican Secretary of the Treasury, Rogelio Ramírez de la O, acknowledged that the economy is facing “another year of challenges” due to the consequences of the pandemic and the war in Ukraine, but there are also opportunities for Mexico. “The current international context and the geographic location of Mexico have positioned our country as one of the most attractive for productive investment, coupled with the work that the Government has done,” he assured. The Government of López Obrador, he confirmed, is now investing more than 630,000 million pesos (almost 31,500 million dollars) in projects “to facilitate trade, the mobilization of goods and connectivity.” And he announced a project of 10,000 million pesos (almost 500 million dollars) for financing micro, small and medium-sized enterprises (MSMEs). c) EFE Agency

Source link

- Advertisement -

New Articles