Economy

Cash-buying law puts Mexico's Central Bank autonomy at risk, governor says

Mexican Senate approved a law that would make the central bank buy up cash that commercial banks cannot return to the financial system

Photo: REUTERS/Luisa Gonzalez
  • Alejandro Diaz de Leon, Banxico’s Governor, called for the lower house of Congress to begin dialogue;
  • Mexican Senate approved the law on Wednesday.

A law approved by the Mexican Senate that would make the central bank buy up cash that commercial banks cannot return to the financial system would put the authority’s autonomy at risk, Central Bank Governor Alejandro Diaz de Leon said on Thursday.

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Speaking in a radio interview, he called for the lower house of Congress to begin dialogue over the initiative, which was approved by the Senate on Wednesday.

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