Mexico’s Senate aims to pass bills cutting bank fees by end-October: MORENA

airport-bank-board-534216

10/15/19 – Reuters

By Diego Oré

Mexico’s Senate aims to pass a first raft of bills to regulate fees for financial services by the end of October, said Ricardo Monreal, Senate leader of the ruling National Regeneration Movement (MORENA) party.

Last November, shortly before President Andres Manuel Lopez Obrador took office, MORENA lawmakers presented a bill to limit bank fees, sparking an investor backlash that pummeled the peso MXN=, Mexico’s S&P/BMV IPC stock index and banking shares.

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In Mexico, 85 fintechs are seeking permission to operate

black and white business chart computer
Photo by Lorenzo on Pexels.com

09/27/19 – Reuters

By Stefanie Eschenbacher

Mexican banking regulator CNBV said on Thursday it received applications from 85 companies to formally operate in the country under its new fin-tech law as the government of President Andres Manuel Lopez Obrador pushes for more financial inclusion.

The government has been looking to both banks and fin-techs as it aims to reduce cash in circulation to cut down on money laundering and corruption, and to draw more people into the formal economy.

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Mexico Sitting on Untapped Entrepreneurial Talent

07/20/2016 Gallup

emprender.pngWASHINGTON, D.C. — Entrepreneurial talent — an individual’s innate potential to successfully create businesses and jobs — can be found in every postal code in Mexico. But many of these individuals are not being identified and developed.

Just over one in four adults living in Mexico are employed full time for an employer, which is about average for Latin America, but it highlights a disappointing gap between the current state of Mexico’s economy and its potential. The lack of “good jobs” could stem from the sizable informal economy, uncompetitive wages and sparse access to training, development and higher education.

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Taconomics: How Tacos Explain Mexico’s Economy

Forbes, 11/25/2013

woman shopping for water in big box storeAs Mexico evolves its two disparate halves, its globally connected, educated elite and its marginalized, informal workforce continue to exist side by side in the country’s capital.

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Mexico aims to lure millions out of informal economy

Old Man selling bananas - CubaThe Global Post, 11/12/2013

Alfredo Barrueta has worked in the streets of Mexico City since childhood, graduating from ball juggler to car windshield cleaner before scratching a living by selling roses.

Barrueta, 37, is among 30 million Mexicans, or 60 percent of workers, toiling in the informal economy — a massive workforce that the government is trying to convince to pay taxes in return for wider social security.

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Mexico president to whack middle class with taxes

USA Today, 10/11/2013

Photo by Flickr user Angelica RiveraPresident Enrique Peña Nieto has proposed overhauling the country’s tax system to raise more revenue, increase social spending and curtail the informal economy – all in a country where tax evasion, loopholes and fiscal privileges are considered problematic.

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How Tacos Explain Mexico’s Labor Market

The Atlantic, 10/4/2013

Mexico City

As Mexico evolves its two disparate halves, its globally connected, educated elite and its marginalized, informal workforce continue to exist side by side in the country’s capital. Even as Mexico’s economy continues to transform, many entrepreneurs still prefer to work in the informal sector

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Mexico, where off-the-books work is the rule, not the exception

piggy bank with coinsThe Global Post, 7/30/2013

On a better 12-hour day the vendors can clear $40, or about eight times Mexico’s daily minimum wage, nearly all of it immune from taxes. With that they feed their families, pay rent, and support other merchants with purchases.

Off-the-books labor “affects us all as a society, threatens people’s rights and limits the true economic potential of our country,” Peña Nieto said last week in announcing a campaign aimed at shrinking the so-called informal economy that employs 6 of every 10 Mexican workers.

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A face among Mexico’s 14 million informal workers

Los Angeles Times, 2/15/12

She sits on a plastic stool patting blue-green corn between her palms in front of a portable charcoal grill on a street corner in this city’s dense and noisy downtown.

Lilia Dorantes, who sells the stuffed maize patties known as tlacoyos, works around the corner from a newspaper vendor, a fruit vendor, a pirated-DVD vendor and a vendor who sells dolls dressed as Mexican marines and federal police. The street vendors belong to an army of off-the-book workers who now make up a record 14 million Mexicans pumping money into the informal economy, the national statistics institute reported last  week.

The number of informal workers in Mexico has increased by 1.6 million since 2010, the statistics agency reported. Overall, informal laborers make up nearly a third of all those employed in Mexico.

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Mexico’s Informal Economy Swells Through Recovery

Reuters, 8/25/2010

The ranks of sidewalk vendors, house cleaners and street-corner cooks are swelling in Latin America’s No. 2 economy as out-of-work Mexicans turn to uncertain jobs to survive through a slow economic recovery…

While the overall unemployment rate has floated roughly between 5 and 6 percent in the last eighteen months, the share of Mexicans laboring in the informal sector has climbed, according to the national statistics agency.

There were 660,000 more Mexican workers in the informal sector at the end of June than there were at the same point last year, pointing to a weakness that could ultimately slow the country’s economic recovery.

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