Mexican president picks Borja as new Banxico board member

The nomination, if approved by the Senate, would give Lopez Obrador's three picks to date, a majority on the bank's governing body

Photo: REUTERS/Daniel Becerril/File Photo
  • The bank, known locally as Banxico, has a constitutional mandate to ensure the “purchasing power stability” of Mexico’s peso currency;
  • Irene Espinosa is currently Banxico’s only female board member.

Mexican President Andres Manuel Lopez Obrador said on Monday he will nominate finance ministry official Galia Borja to serve as a new deputy governor of the central bank, part of the monetary authority’s five-member board.

READ ALSO: Argentina softens currency rules about dollar-denominated card purchases

The nomination, if approved by the Senate, would give Lopez Obrador’s three picks to date, a majority on the bank’s governing body.

Borja, who currently serves as treasurer, is set to replace Javier Guzman, known as one of the central bank’s more hawkish board members, applying a more cautious approach to cutting the its main lending rate.

The bank, known locally as Banxico, has a constitutional mandate to ensure the “purchasing power stability” of Mexico’s peso currency.

Irene Espinosa is currently Banxico’s only female board member.

READ ALSO: Wish plans to raise US$ 1.1 billion in IPO

Last month, Banxico’s hawks appeared dominant as they defied expectations and held borrowing costs steady for the first time in nearly 1-1/2 years.

Get the best insights about Latin America market in your inbox