Mexican Central Bank head quits amid fears over “Trump impact”
In one of the day’s more puzzling developments, the Mexican peso tumbled on news that the head of the Mexican central bank, Augusten Carstens, who several years ago competed against Christine Lagarde for the top IMF post, announced he would unexpectedly stand down from his post next July. The term of the 58-year-old Carstens, who headed the central bank since 2010, was due to conclude at the end of 2021, which makes today’s announcement particularly surprising.
Carstens, a former Mexican finance minister respected by international investors, will leave to take the top job at the Bank for International Settlements in October for a five-year term. He is known as a savvy political operator who rose from being the central bank’s chief economist in the 1990s to hold senior posts in the finance ministry. As head of the central bank, he presided over Mexico’s recovery from the global financial crisis and helped keep inflation low in a country that had suffered a string of economic mishaps in previous years.
The peso, which has plunged in recent weeks on by fears surrounding the Trump presidency, tumbled more than 1% on the news, hitting its lowest since mid-November, however it has since recovered modestly.
“It was shocking,” Ernesto Revilla, an economist at Banamex, said of Carstens’ departure cited by Reuters. “There were rumors of this, but no one was expecting it to happen so soon, especially with the new Trump scenario.” Revilla added that “Agustin has been a pillar of economic policy in Mexico.” He added that the peso suffered on Thursday because “there is no clear successor at the central bank … There is no one on the top of peoples’ minds of who could take his place,” he added.
real life jabba the hutt..
“Carstens, a former Mexican finance minister respected by international investors, will leave to take the top job at the Bank for International Settlements in October for a five-year term.”
straight over to the BIS.. *sigh