Photographer: Susana Gonzalez/Bloomberg

Carstens Successor at Banxico Expected by Senators

Corrected
  • Nominee likely named mid-to-end of next week: vice-coordinator
  • Time needed to replace Carstens by Nov. 30, Senator Romo says

President Enrique Pena Nieto will probably send the Senate his proposal for the new central bank governor next week as time draws to a close to elect Agustin Carstens’s successor, according to his party’s vice-coordinator in the Senate.

"It’s very much expected that this could happen by mid-to-end of next week," said Senator Miguel Romo in a telephone interview, who is the Mexico equivalent of U.S. Senate majority whip for the ruling PRI party. "Without being able to affirm this, this is our supposition, of course, because of the timing and because the president is in Vietnam, and we believe when he returns he’ll make his proposal formal."

Agustin Carstens.

Photographer: Susana Gonzalez/Bloomberg

Time is running out for the Senate if it’s called on to approve a new governor before Carstens leaves his post at the central bank Nov. 30 to lead the Bank for International Settlements. While Carstens announced his departure in December, the process to replace him has been drawn out by the upcoming presidential election in July, as speculation rises that Finance Minister Jose Antonio Meade could be tapped as the ruling Institutional Revolutionary Party’s presidential candidate, and if not, as central bank governor.

"Time is upon us," Romo said. "This needs to be done quickly so that there’s time to see this process through in the Senate, regarding the analysis of personality, training, fulfillment of requirements and expertise of whomever is proposed."

While Carstens’s departure draws near, Pena Nieto could also decide to wait to appoint a new governor, in which case the Banxico board member who has held his position the longest would take the post of interim governor. Pena Nieto may also decide to name one of the four deputy governors to the post, in which case no senate vote would be needed for that appointment. In that scenario, a senate vote would be necessary only to fill the deputy governor spot left open by that appointment.

(Senator corrects type of senate vote needed to approve governor in 3rd. paragraph.)
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