MEXICO CITY (AP) —Hours after declaring victory, Mexico’s newly elected president, the first woman to win the job, faced a market meltdown Monday and a tough path toward reconciling a country deeply divided by outgoing President Andrés Manuel López Obrador.
Claudia Sheinbaum has promised to continue the political course set by her populist predecessor despite widespread discontent with persistent cartel violence, the weakening of democratic institutions and fears among investors that an already hostile environment might become much worse.
Hours after the election results were announced, the Mexican peso dropped over 4% in value to close at 17.71 to $1, and the Mexican stock exchange took a dive to close off 6%.
Gabriela Siller, director of analysis at Nuevo Leon-based Banco Base, noted that Sheinbaum’s victory, along with an apparent super-majority in Congress for her Morena party, raised fears.
It “opened the possibility of changes in the Constitution, which alters, or better put, deteriorates the risk balance of Mexico, causing capital to leave the country,” Siller said.