Mexico's Sheinbaum to press ahead with reforms but tells investors not to worry

MEXICO CITY - Mexican President-elect Claudia Sheinbaum on Tuesday tried to calm investor concerns over a proposed judicial overhaul, promising the country would maintain its rule of law while saying she planned to push ahead with the reforms.

"My message is that investors have nothing to worry about," Sheinbaum told a press conference, even as the peso weakened around 1.5% against the dollar on Tuesday.

The ruling coalition, led by Sheinbaum's Morena party, fared better than expected in the June 2 election, giving it a super-majority in the lower house and close to one in the Senate and putting it in a strong position to pass constitutional reforms when the new legislature takes office.

That has spooked markets, with the peso losing about 8% against the dollar last week - its largest weekly fall in four years.

The judicial reform proposes that judges, including the currently appointed Supreme Court, be popularly elected.

Critics fear the reforms would fundamentally alter the balance of power in Mexico, facilitating the political capture of the judiciary and removing vital checks and balances.

While the newly elected Congress will take office at the beginning of September, Sheinbaum will not be inaugurated until a month later, giving President Andres Manuel Lopez Obrador and lawmakers a window to try to enact his reforms.

Lopez Obrador said earlier on Tuesday the reforms could be approved in September.

"We are going to have judges, magistrates, ministers with integrity and (who are) honest," Lopez Obrador said in a press conference.

Lopez Obrador said there was "no problem" with the peso and that what investors truly want is a state of law.

Source: Reuters