The foreign press story of the week was the US Treasury Department announcement accusing three financial Mexican institutions, Intercam, CIBanco and Vector, of facilitating payments and laundering money for drug cartels. The NY Times highlighted how ‘the announcement was received with skepticism by Mexican officials’. The Guardian described President Sheinbaum as ‘frustrated’ during her morning press conference. While Sheinbaum also went on to clarify that ‘we are no one’s piñata’, for now the banking regulator has taken over the accused institutions ‘to prevent a run on deposits’, as reported by the WSJ. All three companies have emphatically denied wrongdoing. Industry executives told the FT the news will ‘push all of Mexico’s financial institutions to increase “know your customer” and anti-money laundering scrutiny’.
While the sky might be figuratively falling, the president also had to deal with literal space debris, following the explosion of one of SpaceX’s rockets close to the border. The NYT reported her pledge to ‘file any necessary claims’ in case the company is found to have violated any international laws.
Headlines were more positive on the business front, in a glass-half-full sort of way. Bloomberg reported American and Mexican negotiators are ‘homing in on a possible quota system’, which would lead to a reduction in tariffs on steel imports. This would represent a significant boon for automakers and other industries.
The judicial elections continued to gather some headlines. The New York Times profiled Hugo Aguilar Ortiz, the incoming chief justice, who rose from a childhood herding goats in rural Oaxaca to the top of the judiciary, representing a historic shift toward Indigenous representation. While praised for championing Indigenous rights, the article notes his past work for the federal government and ties to controversial projects have drawn criticism, raising questions about his independence.
Lastly, on this week’s MexMoves, Damian and Eduardo speak with Rahim Bhaloo, the founder and executive president at JOi Dollar Plus, a Canadian venture tapping into the growing demand for single-price items. They also discuss: the U.S. Treasury Department’s accusations against three Mexican financial institutions, breaking down the implications for the sector and cross-border relations; signs of a potential U.S.-Mexico tariff deal on steel and aluminum; and major changes in Mexico’s sports television landscape. You can listen to it here.
Photo of the Week
Hugo Aguilar Ortiz is the newly elected chief justice of Mexico’s Supreme Court. Photo by Luis Antonio Rojas for The New York Times
FOREIGN PRESS COVERAGE
‘We Are No One’s Piñata’: Mexico Demands U.S. Prove Banks Aided Cartels
25/06/25, The New York Times, Simon Romero and Emiliano Rodríguez Mega
Mexican president demands proof after US accuses banks of laundering drug money
26/06/25, The Guardian, José Olivares
Mexico Takes Over Two Small Local Banks Sanctioned by Washington
26/06/25, The Wall Street Journal, Anthony Harrup and Santiago Pérez
US imposes sanctions on three Mexican finance firms over China fentanyl trade
25/06/25, Financial Times, Christine Murray and Myles McCormick
Debris From SpaceX Explosion, Landing in Mexico, Draws Investigation
26/06/25, The New York Times, Simon Romero
US, Mexico Eye Import Quota in Trade Talks on Steel Deal
24/06/25, Bloomberg, Joe Deaux, Jennifer Dlouhy and Eric Martin
Fitch to Revise Mexico Economy Forecast to ‘Mild’ Recession
25/06/25, Bloomberg, Alex Vasquez and Carolina Millan
He Was a Goatherd as a Boy. Now He’ll Lead Mexico’s Top Court.
23/06/25, The New York Times, Simon Romero and Emiliano Rodríguez Mega
Download PDF: MI-MxForeignPressChatter-062725