Vacancy in Banxico; Gerardo Esquivel concluded his mandate

The representative of the Executive, Andrés Manuel López Obrador, left the position of deputy governor of Banco de México vacant, which expired on December 31.

As predicted by investment strategists, the Executive branch missed the opportunity to nominate Gerardo Esquivel for a second term in office and did not nominate any official to replace him either.

Pursuant to the Bank of Mexico Law, it is the representative of the Executive who is responsible for nominating the members of the Governing Board to the post, and it is he who has the prerogative to propose any of the members of the Board for a second term. board.

Upon expiration of the term without the nomination of the Executive representative, the Bank of Mexico Law provides in its Article 45 that both the Governor and two deputy governors may call a meeting of the Governing Board. Right there they detail that said sessions must be held with the assistance of at least three of its members.

The economist for Mexico from BNP Paribás, Pamela Díaz, recalled that this is not the first time that the Governing Board has functioned without one of the four deputy governors; In 2017 and 2007, the collegiate body made monetary decisions with only four of the five members.

The director of the consultancy Visor Financiero, Joel Martínez, said that the President has been very vocal in his disagreements with Esquivel’s decisions.

This is what happened with the issue of managing international reserves with the deposit of Special Drawing Rights made by the IMF last year, as in the demand made by the president to receive an advance on the remainder of the 2020 operation.

ymorales@eleconomista.com.mx