December 18, 2020
1. Mexico City and State of Mexico return to red light
Deputy Minister of Health, Hugo López Gatell, the Governor of the State of Mexico, Alfredo Del Mazo, and the Mayor of Mexico City, Claudia Sheinbaum, reported that due to the increase in cases of COVID-19 in the Valley of Mexico, health authorities declared that starting tomorrow, Saturday, December 19th, the region will return to “red” on the traffic light scale used to denote COVID-19 restrictions until Sunday, January 10th.
Likewise, he indicated that, in order to implement the sanitary measures that allow the reduction of cases, only the sale of food with delivery service will be allowed. Essential services that will remain operating include energy, transport, manufacture, health, funerals, financial, telecommunications, services and supplies; sale and manufacture of medicines; repair and spare parts workshops; tax, security, public works and water.
2. 15% minimum wage hike approved for 2021
The National Minimum Wage Commission (Conasami) approved a 15% daily minimum wage hike to MXN $141.70 (USD $7.11) slated to begin on 1 January 2021. Additionally, the minimum wage at the northern border economic zone will be increased by 15.75%, to MXN $213.39 (USD $10.70).
Gustavo de Hoyos, President of the Mexican Employers’ Confederation (COPARMEX) stated that the salary increase could lead to the disappearance of around 700,000 companies, as there is no support from the government.
3. Esteban Moctezuma named Mexican ambassador to U.S.
After Martha Bárcena announced that she will leave her post as Mexican Ambassador to the United States, President Andrés Manuel López Obrador nominated Esteban Moctezuma, the current Minister of Public Education, to fill the post.
President Andrés Manuel López Obrador indicated that they will begin the process to confirm the ambassadorship of Esteban Moctezuma and that, for the time being, he will continue his work at the Ministry of Public Education, working specifically on the back-to-school plan.
El Economista: Moctezuma, de embajador en Washington.
4. Banxico law reform debate postponed
The Chamber of Deputies postponed a discussion and vote on the reform of the Bank of Mexico Law, which proposes that foreign monies not repatriated to its country of origin be added to international reserves, that would also help strengthen the economy of Mexican families that receive cash remittances.
The presidents of the Political Coordination Boards of both legislative chambers indicated that, given the relevance of the topic, during the first weeks of January they will install a bicameral working commission, in which the Ministry of Finance and Public Credit, the Mexican Banking Association, the National Banking and Securities Commission, as well as all the actors who wish to contribute their point of view to the debate, will be able to participate.
El Financiero: ‘Desactivan’ reforma a la Ley de Banxico.
5. Decree amending the pension system published
President Andrés Manuel López Obrador indicated that the decree modifying the pension system has already been published in the Official Gazette which, among other things, sets a limit on the commissions that retirement administrators can charge.
According to the National Commission of the Retirement Savings System (CONSAR), the average commissions of the retirement savings system will decrease by 12.49% during 2021. So far, PensionISSSTE is the administrator with the lowest commission.