| | |  Business News | December 2009 
Carstens to Head Central Bank of Mexico
 The News
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December 10, 2009
| | President Felipe Calderón appoints Agustín Carstens Head of the Bank of Mexico, Ernesto Cordero Secretary of Finance and Public Credit and Heriberto Félix Secretary of Social Development. (Presidencia de la República) | |
President Felipe Calderon on Wednesday nominated Finance Sec. Agustin Carstens to head the central bank of Mexico (Banxico), a widely expected move that the Senate will vote on.
"I am convinced that I am presenting the Senate with the best candidate to do the work thats so important to this institution," Calderon told senators. "If this nomination is approved, with (Carstens) heading it, the central bank will efficiently fulfill its duty."
He went on to say, "(the central bank) is an autonomous institution responsible for procuring the stability of moneys purchasing power, guaranteeing the adequate function of expenditure and promoting the healthy development of our financial system."
Carstens would replace Guillermo Ortiz, who is nearing the end of his second six-year term. In turn, Carstens seat would be filled by Ernesto Cordero, the secretary of Social Development. Cordero would be replaced by former Sinaloa gubernatorial candidate Heriberto Felix Guerra.
Analysts said the nomination was positive for markets in general, as Carstens was seen as an internationally respected professional.
"This is favorable and very expected," said Luis Flores, an economist at IXE brokerage in Mexico City. Carstens, he said, "was the most solid candidate and he has all the abilities and experience to take the post."
The outgoing Ortiz clashed with Calderon last year for his keeping interest rates higher than the government wanted as Mexico sank into recession.
Analysts said Carstens is a well-respected professional who would not cave in to political pressure. "This guy is very responsible, and he is a very competent technocrat. Even if he was dovish in his work at the Finance Ministry, that does not mean he will be dovish at the central bank," said a strategist in Mexico City.
Reactions among senators were mixed. Lawmakers from Calderons National Action Party (PAN) were largely supportive of the nomination, while counterparts from the Party of the Democratic Revolution (PRD) rejected the proposal, saying Carstens exacerbated the economic crisis. Institutional Revolutionary (PRI) senators indicated mixed feelings. PRI Sen. Oscar Levin praised Carstens 20-plus years of experience, while Sebastian Lerdo de Tejada called the nomination "bad news" since it would remove strength from the presidents cabinet.
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