UPDATE 1-Mexican president claims money invoice have to respect central bank’s autonomy

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MEXICO City, Jan 20 (Reuters) – Mexican President Andres Manuel Lopez Obrador on Wednesday reported lawmakers ought to be certain a monthly bill aimed at assisting repatriate unwelcome pounds does not have an effect on the central bank’s autonomy, sharpening his message on the contentious laws.

The monthly bill, pitched by the president’s Nationwide Regeneration Movement (MORENA), proposed earning the Bank of Mexico (Banxico) obtain up international income that banking companies cannot offload.

Supporters of the legislation, which passed the Senate final thirty day period, argued it would enable migrants and hospitality employees exchange dollars which banking companies may perhaps be hesitant to choose.

Banxico mentioned the variations could pressure the lender to take in into its reserves money of illicit origin, this sort of as money laundered by drug cartels. That, it said, would undermine the fiscal program and could cause issues with authorities abroad.

Speaking at a news conference, Lopez Obrador claimed a way need to be observed to make sure the monthly bill helps individuals to transform their pounds into pesos without the need of detrimental Banxico’s independence.

The laws also requirements to safeguard economic stability, as very well as make sure that Mexico does not enter into conflict with global fiscal authorities, the president explained.

“That ought to be avoided,” he explained, noting that it was crucial to consider the central bank’s feeling into account.

Lopez Obrador, who had at one point downplayed considerations about the monthly bill, stating that communicate of Banxico’s autonomy remaining undermined was an “exaggeration,” aided to persuade lawmakers past thirty day period of the will need to rework the monthly bill, officials say.

The lessen property of Congress is thanks to acquire up the laws all over again in February. A person probable solution underneath evaluate is for it to be optional, relatively than compulsory, for the central bank to get up extra pounds, a congressional source claimed. (Reporting by Dave Graham Enhancing by Paul Simao)