• The Mexican Peso weakens after the Mexican lower house votes through a set of controversial reforms. 
• Investors are concerned about the negative impact of the reforms on the economy.
• USD/MXN restarts its uptrend after a pause and breaks above 20.00.

The Mexican Peso (MXN) edges lower in its most-traded pairs on the day named after the Norse god of thunder, extending the over-one-percent decline clocked up on Wednesday. 

The Peso is being sold because investors are fretting about the Mexican parliament passing a controversial bill of reforms that critics say will compromise the independence of the judiciary, undermine democracy and damage international trade and foreign investment.  

Mexican Peso depreciates after Mexican congress passes reforms

The Mexican Peso weakened in its key pairs on Wednesday after lawmakers in Mexico’s lower house voted through a controversial bill of reforms to the judiciary. 

The reforms seek to counter the perceived corruption in the judiciary by electing judges through popular vote, rather than by appointment. However, critics argue the bill will compromise the independence of judges and fail to combat corruption, which is more located amongst lower-ranking officials and members of law enforcement agencies. 

Despite protests and strikes from court employees against the reforms, who blocked the entrance to congress on Wednesday – forcing lawmakers to relocate to a sports hall for the debate and subsequent vote – the government managed to get the bill passed, winning a vote of 357 in favor versus 130 against.