Things That Matter

The Peso Plummets After Mexico’s Finance Minister Quits And Calls Out Corruption In AMLO’s Government

Mexico’s peso has taken a hit in value after the country’s finance minister decided to quit his job over disagreements with the president.

The decision by a top adviser to the Mexican president to resign while denouncing conflicts of interest in the government stunned the nation and its financial markets.

After news broke that the finance minister was resigning, the Mexican Peso lost a lot of value.

Credit: @CNBCNow / Twitter

Finance Minister Carlos Urzua’s abrupt decision to quit on Tuesday was the first major cabinet loss since Andres Manuel Lopez Obrador took office in December. The scorching tone of his resignation letter, from a public official known for extreme politeness and addressed to a president who made fighting corruption his central campaign issue, made the departure all the more surprising.

The unexpected departure of Carlos Urzua seven months into Lopez Obrador’s presidency sent stocks and the peso plunging and renewed worries among investors still wary after the president’s cancellation of a $13-billion airport project that was underway outside Mexico City.

In his resignation letter, Urzua called out corruption and conflicts of interest inside the government.

Credit: @CarlosM_Urzua / Twitter

“I’m convinced economic policy should be based on evidence, considering the various effects it may have and free from all extremism, whether from the right or left,” Urzua wrote in the letter posted on his Twitter account, adding that decisions by Lopez Obrador’s government on matters of public administration have lacked foundation. “However, during my term, these convictions weren’t shared.”

His tweet already has more than 25,000 retweets and nearly 7,000 comments.

By midday, the peso had fallen over 2% against the US dollar – a major slide for a currency considered to be quite healthy.

Credit: @LocalBusPod / Twitter

Within an hour, AMLO, as the leftist leader is known, nominated Arturo Herrera, Urzua’s deputy, to replace him. That helped to limit a tumble in the peso, which fell 1.2% at 3:23 pm local time, stopping losses of as much as 2.3% that had followed the publication of Urzua’s letter. The nation’s main stock index fell as much as 2%.

Markets are worried because according to many sources, Urzua was seen as the most responsible official at the finance ministry.

Credit: @GMonroyEnergy / Twitter

Many have admitted that it was not a secret that there were disagreements within AMLO’s government over economic policy.

Urzua had publicly opposed a law proposed by Lopez Obrador’s Morena party to reduce bank fees. He also opposed a proposal that the government dip into central bank reserves to fund infrastructure plans.

Some bickering is to be expected with any government, according to Coutiño, “there should be a consensus in terms of what the administration wants to do in the country.”

And the news simply shocked many, since Urzua had been one of AMLO’s most vocal allies and supporters.

Urzua has been a long-standing ally of Lopez Obrador, having been his finance secretary when AMLO was mayor of Mexico City at the start of the last decade. Herrera is also a former finance minister of AMLO’s in the nation’s capital.

READ: Protests In Mexico Over Increasing Gas Prices Turned Violent

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Mexico City Could Soon Change Its Name To Better Embrace Its Indigenous Identity

Things That Matter

Mexico City Could Soon Change Its Name To Better Embrace Its Indigenous Identity

Mexico City is the oldest surviving capital city in all of the Americas. It also is one of only two that actually served as capitals of their Indigenous communities – the other being Quito, Ecuador. But much of that incredible history is washed over in history books, tourism advertisements, and the everyday hustle and bustle of a city of 21 million people.

Recently, city residents voted on a non-binding resolution that could see the city’s name changed back to it’s pre-Hispanic origin to help shine a light on its rich Indigenous history.

Mexico City could soon be renamed in honor of its pre-Hispanic identity.

A recent poll shows that 54% of chilangos (as residents of Mexico City are called) are in favor of changing the city’s official name from Ciudad de México to México-Tenochtitlán. In contrast, 42% of respondents said they didn’t support a name change while 4% said they they didn’t know.

Conducted earlier this month as Mexico City gears up to mark the 500th anniversary of the fall of the Aztec empire capital with a series of cultural events, the poll also asked respondents if they identified more as Mexicas, as Aztec people were also known, Spanish or mestizo (mixed indigenous and Spanish blood).

Mestizo was the most popular response, with 55% of respondents saying they identified as such while 37% saw themselves more as Mexicas. Only 4% identified as Spaniards and the same percentage said they didn’t know with whom they identified most.

The poll also touched on the city’s history.

The ancient city of Tenochtitlán.

The same poll also asked people if they thought that the 500th anniversary of the Spanish conquest of Tenochtitlán by Spanish conquistadoresshould be commemorated or forgotten, 80% chose the former option while just 16% opted for the latter.

Three-quarters of respondents said they preferred areas of the the capital where colonial-era architecture predominates, such as the historic center, while 24% said that they favored zones with modern architecture.

There are also numerous examples of pre-Hispanic architecture in Mexico City including the Templo Mayor, Tlatelolco and Cuicuilco archaeological sites.

Tenochtitlán was one of the world’s most advanced cities when the Spanish arrived.

Tenochtitlán, which means “place where prickly pears abound” in Náhuatl, was founded by the Mexica people in 1325 on an island located on Lake Texcoco. The legend goes that they decided to build a city on the island because they saw the omen they were seeking: an eagle devouring a snake while perched on a nopal.

At its peak, it was the largest city in the pre-Columbian Americas. It subsequently became a cabecera of the Viceroyalty of New Spain. Today, the ruins of Tenochtitlán are in the historic center of the Mexican capital. The World Heritage Site of Xochimilco contains what remains of the geography (water, boats, floating gardens) of the Mexica capital.

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Mexico Plunges 23 Places On The World Happiness Report As The Country Struggles To Bounce Back

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Mexico Plunges 23 Places On The World Happiness Report As The Country Struggles To Bounce Back

When it comes to international happiness rankings, Mexico has long done well in many measurements. In fact, in 2019, Mexico placed number 23 beating out every other Latin American country except for Costa Rica. But in 2020, things looks a lot different as the country slipped 23 spots on the list. What does this mean for Mexico and its residents? 

Mexico slips 23 spots on the World Happiness Report thanks to a variety of compelling factors.

Mexico plummeted 23 places to the 46th happiest nation in the world, according to the 2020 happiness rankings in the latest edition of the United Nations’ World Happiness Report. The coronavirus pandemic had a significant impact on Mexicans’ happiness in 2020, the new report indicates.

“Covid-19 has shaken, taken, and reshaped lives everywhere,” the report noted, and that is especially true in Mexico, where almost 200,000 people have lost their lives to the disease and millions lost their jobs last year as the economy recorded its worst downturn since the Great Depression.

Based on results of the Gallup World Poll as well as an analysis of data related to the happiness impacts of Covid-19, Mexico’s score on the World Happiness Report index was 5.96, an 8% slump compared to its average score between 2017 and 2019 when its average ranking was 23rd.

The only nations that dropped more than Mexico – the worst country to be in during the pandemic, according to an analysis by the Bloomberg news agency – were El Salvador, the Philippines and Benin.

Mexico has struggled especially hard against the Coronavirus pandemic. 

Since the pandemic started, Mexico has fared far worse than many other countries across Latin America. Today, there are reports that Mexico has been undercounting and underreporting both the number of confirmed cases and the number of deaths. Given this reality, the country is 2nd worst in the world when it comes to number of suspected deaths, with more than 200,000 people dead. 

Could the happiness level have an impact on this year’s elections?

Given that Mexico’s decline in the rankings appears related to the severity of the coronavirus pandemic here, one might assume that the popularity of the federal government – which has been widely condemned for its management of the crisis from both a health and economic perspective – would take a hit.

But a poll published earlier this month found that 55.9% of respondents approved of President López Obrador’s management of the pandemic and 44% indicated that they would vote for the ruling Morena party if the election for federal deputies were held the day they were polled.

Support for Morena, which apparently got a shot in the arm from the national vaccination program even as it proceeded slowly, was more than four times higher than that for the two main opposition parties, the PAN and the PRI.

Still, Mexico’s slide in the happiness rankings could give López Obrador – who has claimed that ordinary Mexicans are happier with him in office – pause for thought.

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