USDMXN: Peso Falls as Mexico’s Finance Minister Suddenly Resigns

USDMXN: Peso Falls as Mexico’s Finance Minister Suddenly Resigns

Mexico's finance minister resigned on Tuesday with a letter made public on Twitter, highlighting his differences with the presidency of Andres Manuel Lopez Obrador.

The Mexican peso fell over 2% on the news and the benchmark stock index slid nearly 1.5%.

"The most important anchor point of fiscal policy for this year is a primary surplus of 1 percent", he said.

In a video message on Tuesday, Lopez Obrador said Urzua was not comfortable with the decisions being taken to upend what the president frequently calls the neoliberal era in Mexico, starting in the 1980s. I am convinced that all economic policy must be carried out based on evidence, taking care of the diverse effects these decisions can have and they must be free of all extremism.

Carlos Ursua also stated that he imposed a hiring employees who "don't have knowledge in the financial field".

Investors have anxious about Lopez Obrador's policy direction since he cancelled a major airport project before taking office, and the government has clashed with businesses on a number of occasions.

By naming Urzua's protege, Herrera, to the top job within an hour of the former's resignation, Lopez Obrador stemmed a sell-off in Mexican assets that saw the peso fall as much as 2 percent and the stock market drop 1.4 percent.

"I was appointed [head of office] Deputy Minister Arturo Herrera Gutierrez, a professional economist, who has such virtues as honesty and humanism". He will lead the country until 2024.

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