The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

Mexico: Is Ortiz right for the central bank?

When president Ernesto Zedillo appointed his finance secretary, Guillermo Ortiz, to head the central bank for the next six years, tongues wagged. In Mexico, political pundits speculated endlessly about the reasons Zedillo would overlook the most obvious choice for the position, the eminently qualified central bank vice governor Francisco Gill Diaz, and sacrifice the most vital member of his cabinet.

Ortiz, after all, is considered the architect of Mexico's successful economic recovery. These observers felt this blatantly political move did not serve the Banco de Mexico's new-found reputation as an autonomous institution. The central bank's credibility suffered a terrible blow with the messy devaluation of the peso in December 1994. After the Ortiz nomination late last year, ominous rumours flew about a second December mistake.

Many in the financial markets, on the other hand, understood the choice perfectly. "I thought it was a great choice," says Eduardo Cepeda, head of JP Morgan's Mexico office. "Ortiz is a very independent person and an orthodox economist." Moreover, Cepeda adds, Ortiz's appointment "shifted more economic power to the central bank. He carries a lot of weight within the country".

Zedillo added more weight when he gave the central bank the last word on foreign-exchange policy.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree