Mexican Finance Minister Carlos Urzua resigned because of clashes with Mexican President Andres Manuel Lopez Obrador, which caused more doubt among investors over the President's economic policies, according to The Wall Street Journal.
Mr. Urzua explained his decision to resign in a strong worded letter on Tuesday. He said that his resignation was due to “many disagreements over economic policy,” and because the administration was basing some economic decisions on extremist ideology.
The peso weakened after news of the resignation came out, falling to 19.13 pesos to the dollar from around 18.88. President Obrador, a leftist nationalist who took power in December, called Arturo Herrera to be the new finance minister.
Herrera is an economist with government and World Bank experience. The appointment of the respected Mr. Herrera helped to ease the worries of investors somewhat, but Mr. Urzua was an important figure in the administration.
Urzua's commitment to maintaining budget discipline as the new government ratcheted up social spending and investments at Pemex was important. Urzua’s resignation might continue to have consequences throughout Mexico.