First Female Mexican President Claudia Sheinbaum Sparks Market Meltdown
MEXICO CITY (AP) — Mexico City was filled with jubilation as Claudia Sheinbaum made history by becoming the first woman to be elected president of Mexico. However, the celebration was short-lived as the market reacted with a meltdown following her victory.
The Mexican peso plummeted over 4% in value, closing at 17.71 to $1, while the Mexican stock exchange took a dive to close off 6%. Investors expressed concerns over the potential changes Sheinbaum’s presidency might bring, particularly with a super-majority in Congress for her Morena party.
The possibility of constitutional changes raised fears among investors, leading to capital leaving the country. Sheinbaum’s team’s initial response to calm the markets appeared muddled, creating further uncertainty.
Despite the market turmoil, Sheinbaum vowed to continue the political course set by her predecessor, Andrés Manuel López Obrador. However, with a deeply divided nation and concerns over cartel violence and weakening democratic institutions, Sheinbaum faces a tough road ahead.
López Obrador, on the other hand, is focused on pushing through controversial constitutional changes before leaving office. His proposed reforms, including eliminating independent oversight agencies and stricter limits on private investment, have sparked concerns among both Mexicans and foreign investors.
The election of Sheinbaum, a climate scientist and former Mexico City mayor, marks a significant moment in Mexican history. With a clear mandate from the people, she faces the challenge of uniting a divided nation and addressing pressing issues such as cartel violence and economic stability.
As Sheinbaum prepares to take office, all eyes are on how she will navigate the turbulent political landscape and lead Mexico into a new era. With the peso in turmoil and investors on edge, her presidency begins under the shadow of uncertainty and high expectations.