Plan C to Materialize in September / Peso Falls

Plan C. President Andrés Manuel López Obrador and Claudia Sheinbaum have reached an agreement to initiate Plan C in September, coinciding with the change  of deputies and senators in Congress.

President López Obrador’s Plan C seeks to add several of the current government programs to the Constitution and to enact reforms in the Judiciary, INE, and other autonomous bodies.  

It is anticipated that MORENA and its allies will collectively hold between 346 and 380 of the 500 seats in the Chamber of Deputies, which would give them a qualified majority to easily pass reforms. In the Senate, MORENA and its allies are anticipated to secure between 76 and 88 of the 128 seats, leaving uncertainty regarding whether they will reach a qualified majority. Nonetheless, experts emphasize that even if they fall short, they will likely seek alliances with the opposition to advance their agenda. 

Mexican Peso. López Obrador emphasized that despite acknowledging market concerns, he maintains confidence in the currency's strength.

The Mexican peso is trading at MX$18.3628 per dollar. Gabriela Siller, Director of Economic-Financial Analysis, Banco Base, noted that investors are looking for a good balance of risk and return in countries. However, with MORENA's position in Congress, there is a greater risk in Mexico.

Claudia Sheinbaum. López Obrador criticized those who say there was electoral fraud, since it has been proven that Sheinbaum obtained 59.75% of the votes. 

According to INE’s preliminary results, Sheinbaum secured between 58.6% and 60.7% of the votes, making her the most-voted candidate in Mexico's recent history. Previously, Xóchitl Gálvez, from Fuerza y Corazón por México, criticized INE since there are differences between the records of each polling place and the preliminary results. The coalition has announced that it will challenge the election results and has demanded INE to review 80% of the polling stations.