1.This Thursday the Bank of Mexico, led by Agustín Carstens, raised the interest rate to 4.75%, a half percentage point rise, to contain inflation and strengthen the peso. Friday morning; however, the peso appeared largely unresponsive to the policy and its volatility is expected to rise. This is the third interest rate hike of the year by Bank of Mexico and it comes after a week of high peso volatility in response to the U.S. Presidential debate and the movement in oil prices after OPEC’s oil supply announcement.
2.Mexico’s Deputy Attorney General’s Office for Federal Crimes Investigation has issued an apprehension order for Guillermo Padrés former governor of Sonora for corruption charges including over 300 suspicious activities of misallocation of funds, money laundering and unjust enrichment. Padrés had met earlier this week with the National Action Party Anticorruption Commission as part of the corruption charges investigation.
3. This Monday, in the development of the corruption accusations against the governor of Veracruz, Javier Duarte, the PRI suspended the governor’s party rights and that of six other government officials from Veracruz. Duarte has been blamed for the bankruptcy of his state, and is charged with unjust enrichment and fund mismanagement. This is the first time that the party rights of an incumbent governor have been revoked and is the beginning of a process that could lead to the definite removal of Duarte from the PRI party.
4. In the new Global Competitiveness Report, published by the World Economic Forum this Wednesday, Mexico is now ranked on the 51st position of the Competitiveness Index, six positions ahead of last year’s ranking. Mexico is now Latin America’s third most competitive economy after Chile and Panamá; the ranking is the most competitive position Mexico has been at in a decade. The improvement has been attributed to higher efficiency in the goods market, increased flexibility in the labor market, and the steady development of the financial market.