(Bloomberg) — Mexico President-elect Claudia Sheinbaum named former Foreign Minister Marcelo Ebrard to lead the country’s economy ministry, an announcement that sent the peso to a session high.
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Sheinbaum also tapped Juan Ramon de la Fuente, who recently served as Mexico’s ambassador to the United Nations, to serve as foreign minister. They were among six cabinet selections the incoming leader announced during an event in Mexico City on Thursday.
Sheinbaum will be sworn in Oct. 1, replacing her mentor and fellow Morena party member Andres Manuel Lopez Obrador. While her victory in the June 2 election was expected, the governing coalition also won most state gubernatorial races and a majority in congress, giving it undeniable control over the country’s direction.
The peso, which has weakened sharply since Sheinbaum’s victory on fears that Morena lawmakers will push forward with controversial reforms, rose 0.5% to 18.3348 per dollar in the wake of the announcement.
Ebrard, who also previously served as Mexico City’s mayor, competed with Sheinbaum last year to become the Morena’s party’s candidate. After initially distancing himself from Sheinbaum, he joined her campaign.
During his time as foreign minister, he oversaw a close relationship with the US through Donald Trump’s presidency and part of Joe Biden’s time in the White House, and worked to obtain vaccines from overseas during the pandemic.
“It’s not a dramatic change — but somehow refreshing and an opportunity to show fiscal commitment,” said Alejandro Cuadrado, head of global FX and Latin America strategy at Banco Bilbao Vizcaya Argentaria SA in New York.
Ebrard has been “involved in the USMCA and the US relationship will remain the most important economic element of this administration,” Cuadrado said.
De la Fuente, meanwhile, coordinated a series of discussion forums organized by Sheinbaum’s campaign in the lead-up to the election. He was once Mexico’s Health Minister, worked on the UN’s AIDS program starting in the 1990s and helmed the United Nations University Council, plus aided its development programs in Latin America.
Prior to Thursday’s announcement, Sheinbaum confirmed that Finance Minister Rogelio Ramirez de la O will be staying in his role.
Sheinbaum’s other appointments were:
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Rosaura Ruiz, a biologist and former minister in Mexico City, as science, humanities, technology and innovation minister
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Alicia Barcena, the current minister of foreign affairs, as environmental minister
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Julio Berdegue as agricultural minister
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Ernestina Godoy, who until recently was the attorney general of Mexico City, as judicial adviser
–With assistance from Vinícius Andrade, Cyntia Barrera Diaz and Jose Orozco.
(Updates with market move, analyst comment and additional announcements and context)
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