Mexico's incoming president has declared her intent to advance constitutional and judicial changes.

Claudia Sheinbaum, Mexico's first female leader, emphasized broad consultations on these reforms, reflecting her resolve to continue despite market volatility and a significant decline in the peso.

During her initial press briefing post-election on June 2, Sheinbaum emerged from a meeting with the current president and close ally, Andres Manuel Lopez Obrador, reaffirming her commitment to a constitutional revamp.

"These reforms can be among the initial changes," Sheinbaum remarked, noting that a primary step would replace appointed Supreme Court justices with elected ones.

Additionally, several lower courts and critical regulatory bodies may be dissolved. Critics argue these reforms could significantly shift the power dynamics in Mexico.

Nevertheless, Sheinbaum assured extensive engagement with judicial system stakeholders during her press conference.

"Judicial reform discussions should involve the bar association, law professors, and the judiciary's ministers and magistrates," she stated.

Some proposals, introduced in February by Lopez Obrador, aimed to dismantle key regulatory agencies as part of a comprehensive constitutional reform package.

Currency

Sheinbaum's coalition holds a two-thirds majority in the lower house necessary for passing these reforms. While they are slightly short in the Senate, additional votes may be garnered through negotiations.

At 61, Sheinbaum is set to assume office on October 1, with Congress convening in early September. This could allow Lopez Obrador a month to enact reforms before his term ends.

Lopez Obrador, with over 60 percent approval, cannot rerun due to Mexico’s single-term limit.

Sheinbaum, a former Mexico City mayor, anticipates no adverse effects on financial markets from the judicial reforms.

However, the peso dropped nearly 2 percent to around 18.55 per USD during her speech. The currency has declined approximately 8 percent since Sheinbaum’s electoral win on June 2, while the main stock index has decreased nearly 4 percent.