Agustín Carstens to delay BIS appointment until December

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The highly-respected governor of the Bank of Mexico has pushed back arrival at the Bank of International Settlements by two months to the end of the year.

Agustín Carstens, who was due to head up the Bank of International Settlements in October, will now join the Basel-based institution in December. He will still depart from the Banxico in July.

In a statement on Tuesday, BIS said it has agreed to a request from Mr Carstens to postpone his appointment from October 1 to December 1.

The Mexican central banker, whose decision to leave the bank after seven years caused a temporary slump in the peso, will replace Jaime Caruana as general manager at the “central bank of central banks”.

“Jaime Caruana has agreed with the BIS Board to stay on as General Manager until 30 November 2017″ said the BIS.

The BIS provided no explanation for the delay.

The Mexican economy has been hit by turbulence in the wake of Donald Trump’s protectionist vows to rip up the North American Free Trade Agreement that is an anchor of the country’s economy.

Banxico raised its benchmark interest rate by 50 basis points this month in an attempt to curb inflation which has soared to an 18-month high. It was the country’s sixth consecutive monthly rate hike.

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