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Banxico – Victoria Rodríguez is nominated as next Governor

  • Today, President Andrés Manuel López-Obrador nominated Victoria Rodríguez Ceja as the next Banxico Governor

  • Victoria Rodriguez currently serves as the Deputy Minister of Spending at the Ministry of Finance

  • If ratified with a simple majority in the Senate, she would serve at least until December 31st, 2027

Alejandro Padilla Santana
Alejandro Padilla Santana

Executive Director of Economic Research and Financial Markets Strategy

Contributors
Francisco Jose Flores Serrano
Juan Carlos Alderete Macal
Banorte
25 November 2021
Published by
  • Today, President Andrés Manuel López-Obrador nominated Victoria Rodríguez Ceja as the next Banxico Governor. If ratified, she would replace Alejandro Díaz de León on January 1st, 2022 

  • This announcement comes after yesterday’s press reports that the candidacy of former Finance Minister, Arturo Herrera, was withdrawn by the President 

  • Victoria Rodriguez currently serves as the Deputy Minister of Spending at the Ministry of Finance. She has an Undergraduate degree in Economics from ITESM and a Master’s degree in Economics from COLMEX 

  • If ratified with a simple majority in the Senate –or by the Permanent Commission–, she would serve as Governor at least until December 31st, 2027

Victoria Rodríguez nominated as the next Banxico Governor. Today, President López Obrador announced that Victoria Rodríguez Ceja will be nominated as the next Banxico Governor. If ratified by the Senate, she would replace Alejandro Díaz de León starting on January 1st, 2022. This announcement comes after several press reports that the candidacy of former Finance Minister, Arturo Herrera, was withdrawn by the President. This was later confirmed by Herrera himself on his Twitter account. We recall that the President introduced the nomination of Herrera last June, when it was also announced that Rogelio Ramírez de la O would become the next Finance Minister. The nomination must be ratified by the Senate –or by the Permanent Commission in case the former is not in session– with a simple majority. Specifically, the President mentioned that the nomination would be submitted today or tomorrow. If approved, she would serve as Banxico Governor for a six-year period, until December 31st, 2027.

Victoria Ramírez career. She has an Undergraduate degree in Economics from Instituto Teconológico de Estudios Superiores de Monterrey (ITESM), and a Master’s degree in Economics from El Colegio de México (COLMEX). She currently serves as the Deputy Minister for Spending at the Ministry of Finance. Previously, she has held several positions within the public sector, including Advisor to the Finance Minister, Managing Director of Budget Policy, Managing Director of Spending, and Debt Director at the Ministry of Finance of Mexico City. She also served as Director of Finance of Mexico City’s Subway.

The first woman to lead Banxico. In his morning conference, President López Obrador praised her performance as Deputy Minister for Spending, assuring that “…she is why we have financial stability, and that no additional debt has been incurred…”. He emphasized that she would be the first woman to lead Banco de México (first table on the right). Moreover, we should mention that the President will have the opportunity to nominate another person next year, as the term of Deputy Governor Gerardo Esquivel ends on December 2022 (second table on the right). As far as we know, she has not made public comments on monetary policy.

We maintain our monetary policy call, albeit recognizing that the outlook is quite uncertain. In this backdrop, we maintain our view that the reference rate will be increased by 25bps in the upcoming decision, on December 16th. In addition, we reiterate our call of 125bps in accumulated rate hikes during 2022, closing said year at 6.50%. Although we do not have yet the specific dates for the decisions to be held next year, we estimate that all of them will be 25bps moves in February, March, May, October, and December. Despite of this, we recognize that the outlook for inflation remains very challenging, as evidenced in today’s report. In this respect, we will also analyze closely the comments made by Board members in the minutes, which will be released tomorrow. We believe that the majority will maintain a hawkish bias and that the balance of risks suggests the possibility that the hiking cycle could be even more aggressive than we currently anticipate.