Monday, June 16, 2025

Cultures mix easily at Zihuatanejo’s Orient Bay Restaurant

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Zihuatanejo's Orient Bay restaurant.
Orient Bay restaurant overlooks the city of Zihuatanejo.

High in the hills and overlooking the beautiful city of Zihuatanejo sits a charming restaurant known as Orient Bay, now in its second year. But like restaurants all over Mexico, this year has brought its challenges.

But owner and chef Didier Pic has hit upon a way to encourage clientele to come back by combining his love of Arabic and Mediterranean food and the performing arts.

Born in Marseille, France, Pic received his training in culinary arts on the French Riviera, in Nice. His extensive career has taken him around the globe as an executive chef to Saudi Arabia, where he reported to Prince Ibrahim Al Saud; to the Camino Real Polanco, famous for Mexico’s largest banquet facility, which accommodates up to 4,000 people; and to Japan, Poland, Spain, Tunisia, China, Thailand, and the United States, to name a few more.

A career opportunity with Club Med brought him to Ixtapa, Zihuatanejo, in 1992, where he met his future wife, who also worked at the resort. After leaving there in 1996, despite having two children, Pic continued his career as a freelance consultant, setting up kitchens or working as an executive chef. Eventually, all the time away from his family made him decide to return home to Zihuatanejo, and in 2019 he launched Orient Bay.

From the beginning, the Mediterranean, Arabic and Asian cuisine received rave reviews from patrons who wanted something different. But like many others, Orient Bay faced a setback when Covid-19 hit. His restaurant, along with other businesses, was forced to close temporarily.

Hicham Billouch from Morocco heads the music and belly dance troupe.
Hicham Billouch from Morocco heads the music and belly dance troupe.

When the go-ahead to reopen came, Pic looked for ways to bring people back. An idea he had planned to implement before Covid struck blossomed once more. He turned to the internet to search for someone who could help him achieve his vision.

There he found a young musician from Morocco, Maestro Hicham Billouch, who already had a remarkable career in his home country. Billouch had played for the Mexican Senate and had cemented a solid reputation here.

Like many people, he came to Mexico a few years ago as a tourist, fell in love with its diversity and decided to stay. He was gratified by the enthusiasm Mexicans had for Arabic and Moroccan music. In particular, he was surprised by the sheer number of belly dancers and belly dance schools in Mexico City alone.

“In Morocco,” Billouch told me, “we have only one!”

With a wide talent pool to choose from, Billouch was able to create a troupe to play traditional Moroccan instruments, along with belly dancers, who were willing to perform across Mexico. Together now for six years, Orquestra Nour Marruecos includes belly dancers Giselle Rodríguez and Judith — the former also plays the qanun, vocals, and the rig, Ernesto Vega on the darbuka, Betzy López on violin and bass and, lastly, Maestro Hicham Billouch on keyboard, guembri and vocals.

As Pic suspected, Zihuatanejo was ripe for something different. Performances for the restaurant’s two shows on December 11 and 12 sold out in mere days. A diverse crowd of both locals and tourists clearly enjoyed the lively performance.

Chef Didier Pic.
Chef Didier Pic.

For 248 pesos per person, patrons were treated to a platter of sampler appetizers like hummus and labneh and a main course filled with tabouleh, falafel and kebob skewers of three different meats. For dessert, there were dates and basbousah cakes.

The event was so successful that Pic plans to add future shows and entertainment. You can find out more at the restaurant’s Facebook page.

The writer divides her time between Canada and Zihuatanejo.

Appearance of salt dome stokes fears of volcano in Veracruz

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It's a saline dome, not a volcano.
It's a saline dome, not a volcano.

The emergence of a natural salt dome in southeastern Veracruz triggered fears among residents that a volcano was forming, but state officials say their worries are unfounded.

However, the dome, which appeared in the municipality of Moloacán, does pose other possible risks, including contamination of water supplies, possible burns from contact with boiling saline-infused mud, and accidents due to possible soil erosion.

Officials said the saline was damaging flora and fauna exposed to the salt-infused mud near the dome and contaminating the water. The boiling hot mud is releasing vapors that had led to residents’ fears about a volcano.

Biologists with the Civil Protection agency said the phenomenon was caused by movements in the ground that are causing shifting and cracks that allow certain gases to escape.

State officials also warned area residents not to drink from local water supplies nor give animals water from nearby sources like streams. In addition, they warned residents not to turn the dome into a local attraction because of possible soil erosion around it.

Salt domes can occur in sedimentary basins where thick salt deposits dating back up millions of years have been buried by at least 500 feet of sediment. If the sediment layers exert enough pressure on the salt layer, it can cause some parts of the salt layer to push upward through sediment.

Salt domes have appeared in the area before. Three domes appeared in 2014 between Moloacán and the municipality of Las Choapas. The natural occurrence eventually disappears, they added, and predicted that new one would last anywhere from a few weeks to a few months.

Sources: Milenio (sp), Imagen de Veracruz (sp)

Lawmakers approve bill that regulates activities of foreign agents in Mexico

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DEA agents' activities will be restricted under new law.
DEA agents' activities will be restricted under new law.

The lower house of Congress approved legislation on Tuesday that regulates the activities of foreign agents in Mexico, removes their diplomatic immunity and allows for their expulsion from the country.

Passed by the Senate last week, the National Security Law reform attracted the support of 329 deputies while just 98 opposed it. The legislation was subsequently sent to President López Obrador for promulgation.

While it refers to foreign agents in general, the legislation is seen as being aimed primarily at United States Drug Enforcement Administration (DEA) and Federal Bureau of Investigation agents who have long operated in Mexico.

Outgoing United States Attorney General William Barr has warned that the legislation would “only benefit the violent transnational criminal organizations and other criminals that we are jointly fighting,” making citizens of Mexico and the U.S. “less safe.”

López Obrador has defended it, saying that it affirms Mexico’s sovereignty and “puts things in order” with regard to the regulation of cooperation with foreign agents.

The legislation states that those agents must share information they gather here with Mexican authorities. They will be required to provide monthly reports of their activities to the ministries of Foreign Affairs and Security.

The law also stipulates that foreign agents will not have any immunity should they commit a crime or carry out an activity that corresponds exclusively to local security forces.

“Although according to international law they will have functional immunity if they stick to exercising consular functions, if they commit crimes they will be subjected to Mexican justice,” said Rocío Barrera, a Morena party deputy.

“They won’t have any immunity if they enter our country without being accredited by the Ministry of Foreign Affairs,” she added.

Adriana Dávila, a deputy with the National Action Party, which opposed the legislation, described the law as a unilateral approach to multilateral threats such as organized crime, drug and arms trafficking, money laundering and terrorism.

She said that removing foreign agents’ diplomatic immunity and making them subject to trial in Mexican courts could result in an “international conflict with serious consequences.”

The legislation also stipulates that Mexican authorities will at at all times monitor the activities of foreign agents to ensure that they are complying with Mexican legal obligations and those derived from international security agreements to which Mexico is party.

One example is the Mérida Initiative, a 12-year-old security cooperation agreement between Mexico, the United States and Central American countries.

The legislation says that if a foreign agent, “in the opinion of Mexican authorities,” violates “general and specific provisions” applicable to him, “the government of Mexico will request his withdrawal from the government of the accrediting state.”

It also says that foreign agents in Mexico can only carry weapons that have been authorized by the Mexican Ministry of Defense. They will be prohibited from acting unilaterally to make arrests or raid private property.

Mexican officials will have to get permission from a new security panel to meet with foreign agents and will be required to promptly provide details of what they discussed to the Foreign Affairs and Security ministries.

Ioan Grillo, a veteran drug war journalist based in Mexico, said in a video posted to his YouTube channel that the legislation is a “real big, game-changing law.”

Mexican Law Puts Leash On DEA Agents
Journalist Ioan Grillo says law is retaliation against US for arresting ex-defense minister.

 

“[It] really alters how the DEA has done business here in Mexico for almost 50 years,” he said, adding that it will “really restrict what American agents can achieve here in Mexico.”

After noting that there is widespread agreement that Mexican security forces are “extremely corrupt,” Grillo said that under the new law “any information about drug traffickers and what the [foreign] agents are going after goes to the Mexican federal government government,” adding that the information could “slip out and these people could perhaps escape capture that way.”

Grillo and other observers say the legislation is retaliation for the United States’ arrest in October of former army general Salvador Cienfuegos on drug trafficking charges. After being lobbied by Mexican authorities, who complained about not being informed about the plan to arrest the ex-defense minister, the U.S. in November surprisingly agreed to drop charges against Cienfuegos and send him back to Mexico even though he is not currently accused of any wrongdoing here.

Alejandro Hope, a Mexican security analyst, told The New York Times that the legislation is a symbolic effort to reassert Mexican sovereignty before Joe Biden assumes the United States presidency in January.

“They’re scared of the transition in the United States. They want to send a message that there are tools on this side” of the border,” he said.

In a congratulatory letter sent to Biden on Monday, López Obrador included a caution about Mexico’s support for non-intervention in the affairs of foreign countries, writing, “we are certain that with you as president of the United States it will be possible to continue applying” the principle.

Source: Milenio (sp) 

Partying, gun-happy cops investigated in Michoacán

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Mayor Morón
Mayor Morón: investigation ordered.

Municipal and state security officials are investigating an incident in which at least 10 Michoacán state and Morelia municipal police officers were caught on video at a house party last weekend where a gun was fired into the air.

The 20-second video was recorded at night and not clear. But what was on the video was enough for municipal and state authorities to launch their own separate investigations.

Michaocán police said they had identified one of their female employees in the video.

Morelia Mayor Raúl Morón Orozco said he had instructed the police to open an internal investigation into the video.

Any officers found to be involved in the incident would be sanctioned according to municipal regulations, he said.

In the video, which shows what appears to be a small house party, multiple people dressed in what appear to be police uniforms are seen drinking and dancing inside a house. Later in the video, men in civilian clothes who Morelia security officials have identified as municipal police officers are seen on a patio outside.

One of them shoots a pistol into the air three times in the general direction of a street. A municipal police car can be seen parked in the background.

Sources: Mi Morelia (sp), El Universal (sp)

Tulum festival regrets not having canceled event that spread virus

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Festival-goers enjoy a previous, pre-Covid Art With Me event.
Festival-goers enjoy a previous, pre-Covid Art With Me event.

The organizers of a multi-day festival in Tulum, Quintana Roo, last month — described as a coronavirus  superspreading event — have issued an apology.

In a statement to CNN, the organizers of the Art With Me festival said they regretted “not canceling the event entirely.”

Numerous cases of the coronavirus were detected in both Mexico and the United States among people who attended the November 11-15 festival or had contact with someone who did.

The event, which organizers describe as “an international arts, music and cultural festival curated to inspire us to be more connected to ourselves,” published recommendations on its website to prevent the spread of the virus but many attendees ignored them.

Video footage of nighttime parties at hotels, restaurants and cenotes (natural sinkholes) in Tulum show hundreds of maskless people dancing in close proximity to each other.

Marlene Góngora, a 40-year-old Mexican lawyer who attended the festival, told CNN that the risk of infection was far from her mind while she was enjoying the event.

“When people are gathering in front of the DJ, it’s obvious that nobody is wearing a mask because you are at the beach. At that moment, when you’re at a party, you’re not thinking of contagion,” she said.

The festival organizers said they cooperated with authorities to develop health measures that included temperature checks upon entry to venues, the distribution of face masks and their mandatory use “in certain areas.”

But “we learned that we cannot control people from adhering to guidelines, or staying away from other venues in the area that did not adhere to our standards,” they said.

“We stand behind our protocols and are grateful to the Mexican government for their incredible cooperation. However, in the end, we regret not canceling the event entirely. We apologize for any strain this may have caused our already overtaxed healthcare system and front line workers, and we hope others might learn from our experience.”

As of Tuesday, only 311 confirmed coronavirus cases had been detected in the municipality of Tulum compared to more than 7,000 in Benito Juárez, which includes the Quintana Roo resort city of Cancún.

tulum
In Tulum, festivals are permitted to have gatherings of up to 300 people

Tulum Mayor Víctor Mas told CNN that up to 300 people are permitted to attend events in the municipality as long as venue capacity limits are adhered to. That allowed the organizers of Art With Me to hold the festival at five venues across Tulum, he said.

Tulum Hotel Association president David Ortiz Mena said that the owners of local hotels, which hosted some of the Art With Me events and accommodated attendees, agreed to comply with coronavirus restrictions including limits on restaurant and bar capacity.

However, he acknowledged that the rules were not always followed.

“Sadly, even though efforts were made both by the organizers of the event and the local government, this event clearly got out of hand,” Ortiz said. “I think the attendees to the event also have a responsibility. Clearly, people are not taking care of themselves.”

The hotel association chief said he was concerned that large events such as Art With Me, and the surrounding negative media coverage, could have an adverse effect on the broader tourism industry in Tulum.

“I think it’s one thing to have tourism, to have our beaches open, to have people visiting Tulum. But … if you do this type of event, it really puts us all at risk, not just the visitors, but our staff, the people who live here,” Ortiz said.

“And at the end of the day, not just human lives, but also the economy. People are supposed be able to make a living and there’s no excuse to put us all at risk. We should avoid this at all cost.”

Another multi-day festival, Zamna, is scheduled to go ahead in Tulum on New Year’s Eve but Mayor Mas said that it and other large events won’t be permitted unless the coronavirus risk level drops to green light “low.”

The risk level in Quintana Roo is currently orange light “high” on the federal government’s coronavirus stoplight system after switching to that color from yellow light “medium” at the start of last week.

Source: CNN (en) 

Another 119 skulls discovered in Aztec skull tower in Tenochtitlán

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Skulls discovered in the Huei Tzompantli in what is now Mexico City.
Skulls discovered in the Huei Tzompantli in what is now Mexico City. pau/inah

Archaeologists have discovered 119 human skulls in an Aztec tower located within a historic building near the Templo Mayor archaeological site in Mexico City.

The federal Ministry of Culture said that archaeologists with the National Institute of Anthropology and History (INAH) found the extreme eastern side and the facade of the Huei Tzompantli, an almost five-meter-diameter circular skull tower that was dedicated to the war, sun and human sacrifice deity Huitzilopochtli and dates back to the final years of the 1400s and first years of the 16th century.

The discovery of the 119 skulls was made in March while the INAH was supervising renovation work on the historic building, located on a street behind the metropolitan cathedral and next to the Templo Mayor, the main temple of the Aztec capital of Tenochtitlán. Other sections of the tower, including 484 skulls, were first discovered in 2017.

“The Huei Tzompantli is without a doubt one of the most impressive archaeological discoveries in our country in recent years,” said Culture Minister Alejandra Frausto. “It’s an important testimony to the power and greatness achieved by México-Tenochtitlán.”

Rodrigo Bolaños Martínez, an INAH physical anthropologist in charge of conducting an analysis of the recently-discovered craniums, said that the skulls of men, women and at least three children were among them.

Raúl Barrera Rodríguez, the head of INAH’s urban archaeology program, and Lorena Vázquez Vallín, who led the team that discovered the skull tower, said it’s likely that some of the people whose craniums form part of the Huei Tzompantli were killed as a sacrifice to the gods.

“Although we can’t say how many of these individuals were warriors, perhaps some were captives destined for sacrificial ceremonies,” Barrera said.

“We do know that they were all made sacred, turned into gifts for the gods or even personifications of deities themselves,” he said.

Barrera said that human sacrifices were carried out daily in Mesoamerica as an offering to the gods. The objective was to ensure the renewal of nature and “the continuity of life itself,” he said.

The practice shocked and instilled fear in the Spanish conquistadores led by Hernán Cortés, who conquered Tenochtitlán in 1521.

According to the Culture Ministry statement, the conquistadores witnessed numerous sacrifice ceremonies at seven tzompantli (skull racks) that were known to exist in the sacred precinct of the Aztec capital.

Mexico News Daily 

AMLO congratulates Joe Biden on US election win

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joe biden and lopez obrador
López Obrador was one of the last world leaders to congratulate Biden, left.

President López Obrador has finally congratulated Joe Biden on his win in last month’s United States presidential election after the U.S. Electoral College affirmed the former vice president’s victory.

“I write this text to congratulate you for the triumph the people bestowed on you and which has been confirmed by the electoral authorities of the United States of America,” López Obrador wrote in a two-page letter to the president-elect that was dated December 14 but not released until Tuesday.

Unlike the vast majority of world leaders, AMLO, as the president is best known, decided not to congratulate Biden after the U.S. media called the race for him days after the election was held.

Speaking four days after the November 4 election, López Obrador said that he would wait until U.S. President Donald Trump’s legal challenges were resolved before offering his congratulations to the successful candidate, explaining that he didn’t want to be “imprudent.”

Along with Vladimir Putin of Russia, Xi Jinping of China and Jair Bolsonaro of Brazil, AMLO was among a small group of leaders who didn’t immediately congratulate Biden after the media declared his victory.

Some analysts said López Obrador’s objective was not to offend Trump, with whom he has maintained a friendly relationship, given that the U.S. president still had time to enact policies that could hurt Mexico. AMLO’s own experience in challenging the results of presidential elections he lost (2006 and 2012) was also seen as a factor in his decision to wait.

The president rejected any suggestion there could be future reprisals against Mexico for delaying his congratulatory remarks.

In his letter to Biden, López Obrador noted that they first met nine years ago, recalling he had told him personally and in writing about his aspiration to transform Mexico and eradicate political corruption, which he described as “the main cause of the painful inequality and violence we suffer.”

AMLO wrote that Mexico and the United States are linked by their proximity to each other and that “our people are united by history, the economy and culture.”

“The leaders must thus strive to maintain good bilateral relations based on collaboration, friendship and respect for our sovereignty,” he wrote.

But there was also what could be construed as a subtle warning.

“We are certain that with you as president of the United States it will be possible to continue applying the basic principles of foreign policy established in our constitution, especially that of non-intervention and [the right] to people’s self-determination,” López Obrador wrote.

AMLO thanked Biden for his “position in favor of the migrants from Mexico and the world,” expressing confidence that the incoming U.S. president will support the continuation of the development plan for southeastern Mexico and Central American nations.

“In this way, I believe that nobody will be forced to abandon their place of origin and will be able to live, work and be happy with their family among their people and culture,” he wrote.

“In that way we will manage to build the definitive solution to migratory flows from and through Mexico to the United States. I hope that soon, Mr. Biden, the opportunity presents itself to speak about this and other issues,” López Obrador said before signing off his letter to the president-elect with “warm regards.”

AMLO has managed to maintain a largely friendly relationship with Trump despite the U.S. president’s occasionally aggressive rhetoric toward Mexico.

The pair met in July at the White House, where López Obrador said that Trump has treated Mexico with respect since he took office in late 2018.

Trump declared that he had an “outstanding” relationship with AMLO and, in an apparent reference to the Mexican government’s deployment of the National Guard to block migrants’ path to the United States, thanked him for stopping the flow of asylum seekers to the two countries’ shared border.

Mexico News Daily 

Dozens of families displaced by Oaxaca territorial dispute

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Municipal headquarters of San Lorenzo Texmelucan
Municipal headquarters of San Lorenzo Texmelucan, whose citizens are accused of terrorizing residents of a neighboring municipality.

A dispute over territory has been terrorizing multiple families in tiny southwestern Oaxaca communities who say their homes have been burned down or they’ve been given two weeks to abandon the land they’ve lived on for a century.

The 10 remote communities that are part of the municipality of Villa Sola de Vega and are made up of 10–15 families say they have been living in fear for two months, and all point to one source of that fear: armed gangs of residents from the nearby municipality of San Lorenzo Texmelucan, who claim that the land belongs to them thanks to an agrarian court decision.

The small community of El Sargento was targeted first, the victims say. Armed groups burned down their houses, forcing them to flee. The latest aggression happened on December 8, when residents of Santa Caterina La Cañada say an armed gang arrived in the community, threatened the local police officer and his family and told him to inform the town’s residents they all had 15 days to evacuate, prompting some residents to leave town the next day.

Residents in the community of El Anis say they have received the same ultimatum.

Those who remain in the 10 communities say they live in fear of being chased out at any point. Some told the newspaper El Universal that they would be willing to acquiesce to legal claims to the land by San Lorenzo Texmelucan residents if those claims were backed with documents.

[wpgmza id=”276″]

The communities, which are rural, remote, and sparsely occupied, are located far from the municipal seat in Sola de Vega, which residents feel leaves them without law enforcement. Some say they do not believe the municipal government cares about what is going on and have petitioned the federal government for a resolution and to bring in the National Guard to protect them.

It would not be the first time that the federal government has had to intervene in the area. In 2006, a federal agrarian court ruling regarding a land dispute between San Lorenzo Texmelucan and another municipality in the same area, Santo Domingo Tojomulco, noted that a violent dispute between the two entities had lasted nearly two years and had resulted in several deaths in both communities, forcing the federal government to intervene and mediate.

A Senate document in 2009 noted that the two communities had been fighting over the land as far back as 1935.

Two years ago, Hermilo Ríos, a member of the Sola de Vega municipal council who represented the communities, was killed. He had been heavily involved in trying to find resolutions to the ongoing issue.

There were at least 400 outstanding land disputes in Oaxaca, the state government said a year ago. They had cost the lives of 78 people in the preceding three years.

Source: El Universal (sp)

Child’s body was bound for common grave; residents decided otherwise

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A man prepares a cross to mark the grave of Dulce María, whose body was never claimed after she was found dead on a Tijuana sidewalk.

A young girl whose body was found in a cooler in August was saved from being buried in an anonymous, communal grave after residents of the Tijuana neighborhood where she was found banded together to give her a more dignified resting place.

The girl, who authorities say was between 5 and 10 years old when she died, was buried Monday in one of Tijuana’s public cemeteries with a funeral attended by residents of El Pípila neighborhood and by the director of a local orphanage.

“I came because I have a son about her age,” said Aurora, a woman of about 50 who arrived at the burial with her 6-year-old son Aaron in tow. “Nobody deserves to die alone, completely unknown, least of all a creature so young,” she said as she and her son held flowers and a drawing Aaron had made to be buried with the girl.

Dulce María, as she was dubbed by residents after being found dead on August 30, was discovered inside an abandoned cooler on a sidewalk in El Pípila. Although authorities at first said they detected signs of violence, forensic experts later confirmed that she showed no signs of mistreatment, but instead there were indications of cerebral palsy and she had died of pulmonary sepsis.

The body remained unclaimed at a forensic facility for nearly four months while police, who made clear that they were not treating the case as a homicide, waited to see if anyone would come for her.

The service for Dulce María.
The service for Dulce María.

No one ever did, and so the unidentified girl was destined to be buried in a communal grave.

However, El Pípila residents decided that this would not stand. Working with a local orphanage, they contacted forensic authorities and asked to be allowed custody of the girl’s body for a funeral and the proper burial they felt she deserved. Authorities agreed and delivered her body to residents Monday.

Liliana Camacho, director of the Casa Hogar Sonrisa de Ángeles orphanage, gave a eulogy, saying that what had happened to her was not her fault, and that her life, however short, would be an example to others. Camacho said that in the girl’s short period on Earth, she had left behind a legacy: her life had inspired a community to come together.

Source: El Universal (sp)

Debate of controversial bank bill postponed until February

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Monreal, left, author of the bill and Salinas, the only banker who would benefit from the measure.
Monreal, left, author of the bill and Salinas, the only banker who would benefit from the measure.

The lower house of Congress has postponed debate and a vote on controversial legislation that would force the central bank to buy up all foreign cash that commercial banks can’t trade or sell abroad.

The Senate passed the bill last Wednesday and lower house lawmakers were expected to debate the bill and put it to a vote on Tuesday, the final sitting day of the year.

A vote is now expected during the first sitting period of 2021 in February. The decision to postpone the vote came after the bill attracted heavy criticism, even from the Bank of México itself.

The ruling Morena party says the objective of the legislation is to ensure that migrants can send remittances home in cash and their family members can exchange US dollars at a fair exchange rate at banks. It also says it would help tourism sector workers who often receive tips in dollars.

But critics say that it could force the Bank of México to buy cash obtained by drug cartels and other criminal organizations via illegal means. That could have an adverse effect on the central bank’s relations with its counterparts abroad, and foreign countries could impose restrictions on the entire Mexican banking sector.

There is also concern that the legislation violates the bank’s autonomy.

Ricardo Monreal, the leader of Morena in the Senate and the main proponent of the bill, announced the establishment of a working group to discuss the legislation in the first weeks of 2021 prior to a February vote. He said that representatives from both houses of Congress, the Finance Ministry and the Bank of México will participate in the group.

Monreal said Sunday that such a group should be formed to look at ways in which the bill can be improved.

The senator has rejected any suggestion that the law undermines the central bank’s autonomy.

Morena’s leader in the lower house, Ignacio Mier, said on Twitter Tuesday afternoon that he had proposed the creation of a working group with the participation of all sectors that are affected by the legislation: “the Bank of México, financial institutions and 30 million migrants.”

Some dialogue between lawmakers and stakeholders has already taken place, and the latter’s opinions of the bill have been overwhelmingly negative.

Finance Minister Herrera
Finance Minister Herrera: more technical and profound discussion required.

Bank of México Governor Alejandro Díaz de León told the Chamber of Deputies’ finance committee that if the legislation is approved, the whole cash management “ecosystem” would be compromised for the benefit of one financial institution that is having trouble offloading foreign cash.

He didn’t name the institution but media reports indicated that he was referring to Banco Azteca, owned by billionaire businessman Ricardo Salinas, who is regarded as a close ally of President López Obrador.

Members of the finance committee discussed the bill for more than three hours on Monday with representatives of the Association of Mexican Banks (ABM) and foreign banks.

The bankers warned there was a possibility that the central bank might be forced to buy ill-gotten cash and said that it could come under audit by foreign banks as a result. They also said the United States Department of Justice could seek to intervene if the Bank of México was seen to be violating international treaties by buying up foreign cash obtained illicitly.

“This could lead to the freezing of [central bank] reserves. … There is no precedent in the world of a central bank having that type of risk,” said Héctor Grisi, executive chairman of Santander.

ABM president Carlos Rojo proposed entering into bilateral discussions with the United States to seek a solution to the excess foreign cash problem, which according to the Bank of México is not a significant one.

While there are anti-money laundering laws here and elsewhere in the world, they are not foolproof, he said.

Emilio Romano, head of the Bank of America in Mexico, said the bill’s proposal has already caused uncertainty in global markets. He said the legislation is not an ideal solution to the excess cash problem because it places a burden on an institution – the central bank – that is essential to financial stability.

Romano suggested a better alternative could be found via dialogue between the Bank of México, the Finance Ministry, the United States Department of the Treasury and the U.S. Federal Reserve.

The rating agency Moody’s said in a report that if the bill passes the lower house of Congress and becomes law, there will be a negative impact on Mexico’s sovereign rating and economic stability will be undermined.

Finance Minister Arturo Herrera weighed in on Tuesday, saying that postponing congressional debate on the bill to allow external dialogue was the right decision.

He said it was clear that the implications of the legislation had not been analyzed.

“As has just been made public, deputies postponed debate of the Bank of México law. We think they have taken the appropriate step to provide space for a more technical and profound discussion,” Herrera wrote on Twitter.

“One fact for discussion: about 99.3% of all remittances already go through the banking system [via electronic transfers]. This is the route that we must keep operating so that they continue to arrive quickly, safely and at a low cost.”

That remark, as the Bank of México has been saying all along, recognizes that problems associated with exchanging cash remittances from migrants is not as significant an issue as Morena has been making it out to be.

Source: Reforma (sp), El Universal (sp)