AMLO’s Money Guy Sends a Message to Anxious Wall Street Crowd

1/9/2019 – Bloomberg

23-julio-2018.-AMLO-Conferencia-06-1024x683.jpgBy Nacha Cattan

In his first trip abroad as Mexico’s finance minister, Carlos Urzua had a message he clearly wanted to deliver to the New York investing community. It was, in essence: Don’t worry, the young administration of President Andres Manuel Lopez Obrador understands the laws of economics and isn’t about to try any radical experiments that could jeopardize Mexico’s financial health.

Over the course of an almost 40-minute interview that he packed into a day full of meetings with Wall Street financiers, Urzua emphatically, and repeatedly, stated that the government will not seek to engineer faster growth than the economy can realistically handle (a mere 2 percent this year); that it respects the autonomy of the central bank; that it’s slashing spending in some ministries; that there will be no tax increases and, if anything, possibly a tax cut to help turn around the state-run oil giant Petroleos Mexicanos.

The peso’s rally in recent weeks was an affirmation, Urzua said, of the market’s growing confidence in a leftist president many had feared, and he predicted excitedly that the currency could keep strengthening in coming weeks — to trade below 19 pesos per dollar or better.

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