Investment strategists in Mexico and New York rule out that the Executive nominate Gerardo Esquivel for a second position as deputy governor of Banco de México (Banxico), who ends his responsibility on December 31.
From Wall Street, the chief economist for Latin America at Barclays, Gabriel Casillas, explained that investors are attentive to the possible replacement of the official. Above all, they trust that the new member of the Governing Board will have the academic credentials and experience that will enrich the central bank’s decisions.
Pursuant to the Banco de México Law, it is the representative of the Executive who is responsible for nominating the members of the Governing Board. So far, three months after the end of Deputy Governor Esquivel’s term, he has not ruled on his ratification for a second term or on his replacement.
The Barclays strategist estimates that there are three officials who could be nominated for the position in case the president decides to relieve Esquivel.
Among them is the CEO of Banobras; Juan Pablo de Botton, who is Undersecretary of Expenditures and replaced Victoria Rodríguez Ceja in the Treasury; and the Undersecretary of Finance, Gabriel Yorio.
Also from New York, the chief economist for Mexico and Canada at Bank of America Securities, Carlos Capistrán, explains that his possible replacement is not a matter of concern for investors.
Another eight years in office
They know that he is eligible for another eight-year term in office and that there is a possibility that he will not be renewed. But they are not worried because they understand that the decisions in Banxico’s Governing Board are made by five members and that in the latest decisions they have gone in the same direction. Therefore, if Esquivel leaves, they trust in the central bank’s institutional framework to continue to comply with the objective of price stability, he stressed.
Capistrán says that this time he has not heard any names of possible replacements for the position of Banxico, but he stressed that the president has opted for officials who come from the Treasury.
In addition, the director of the Visor Financiero consultancy, Joel Martínez, said that the President has been very vocal in his disagreements with Esquivel’s decisions. This was the case with the issue of managing international reserves with the deposit of Special Drawing Rights made by the IMF last year, as well as in the demand made by the president to receive an advance of the remainder of the 2020 operation, from June of the same. year.
It should be remembered that even to reach the Governing Board in 2018, Esquivel came from having a dispute with López Obrador, then a candidate for the presidency.
