Mexico’s Central Bank Cash-Buying Reform Should be Respected – President

RIO DE JANEIRO, BRAZIL – Mexican President Andres Manuel Lopez Obrador said on Thursday, December 10th, that a controversial reform that would oblige the central bank to buy up cash that commercial banks cannot return to the financial system should be respected.

The planned reform has fanned concerns the central bank could end up taking in laundered money from drug cartels. It was approved by the Senate on Wednesday, and must pass the lower house before becoming law.

“It should be respected,” Lopez Obrador said during his regular morning news conference.

Known as Banxico, the Bank of Mexico has said the reform contains risks for its operations.

Lopez Obrador’s party has pitched the reforms as a way to help migrants pass on cash that financial controls have made it tougher for them to unload. It denied the bill could compromise the central bank.

Source: Reuters