1. The Bank of Mexico raised interest rates by half a percentage point to 5.25% this Thursday in response to the volatility of the peso, which reached an all time low loosing 10% of its value since the results of the U.S. election . In its statement the Bank of Mexico, affirmed that a period of uncertainty is coming and that concerns about trade and foreign investment are driving this hike in interest rates.
2. After the results of the U.S. election, concerns about the President-elect’s controversial policies have dominated the conversation in Mexico, mainly revolving around migration and trade. With regards to trade, and particularly NAFTA, businesses and companies of both the U.S. and Mexico have created a coalition of over 5000 companies, to make the case for the importance of NAFTA and trade between the U.S. and Mexico. Experts in international trade have cautioned Mexico to avoid taking a defensive stance on this issue and urged the government define its position for renegotiation of NAFTA as soon as possible. With regards to migration, the Trump’s announcement of initially deporting up to 3 million people during his Presidency, the Mexican Ministry of Interior responded that legally, the United States can only deport 60,000 immigrants per year and affirmed that the country is prepared to respond to the migratory policies that the administration of Trump would want to impose. Furthermore, the Ministry of Foreign Relations of Mexico issued an alert for migrants in the U.S. and has established an 11 point action plan to protect the Mexican community in the U.S. and to respond to any incidents of violence or discrimination through its network of consulates.
3. The National Electoral Institute of Mexico announced on Wednesday that political parties have been evading taxes and owe different institutions, including the Mexican Social Security Institute, up to 626 million pesos. The left-wing party PRD is the political party with the most debt amounting to 53% of the total debt that the parties owe. Electoral Councilor Ciro Murayama, affirmed that this is a common practice during electoral periods which reflect the fragility and corruption of the State and affirmed that this is a matter that needs to be solved urgently, giving the parties until December 31st, 2016 to pay their debts. The response of the parties have predominantly focused on clarifying the nature of the debt and separated the national from the individual states debt.
4. On November 10, former governor of Sonora, turned himself in 42 days after an apprehension order was issued against him. He is currently being held in Mexico City and is facing seven charges with regards to money laundering, fiscal fraud and organized crime. His son is also facing organized crime charges. The former governor will be facing between 38 to up to 94 years in prison. Given the severity of the charges, Padres will have to face the process in jail and will not be allowed to post bail.