Emerging Markets 

Mexico: will populist governments derail economic reform?

Mexico: will populist governments derail economic reform?
REUTERS/Goran Tomasevic Andres Manuel Lopez Obrador has defied the expectations of many investors and analysts

The reaction of Mexican markets to this month’s election of firebrand Andrés Manuel López Obrador has defied the expectations of many investors and analysts. The Mexican peso has rallied 5 per cent against the US dollar, reversing a 12-month decline, while the Mexican Bolsa is up 9 per cent. That’s far from the crashes some foresaw. Investors seem to have taken comfort from the incoming president’s post-election promises to respect central bank autonomy, the free-floating peso and business freedoms.     

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