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Senators Approve State Control of Lithium

MEXICO
  • Mexican senators passed a mining bill Tuesday afternoon that confirms state control of lithium exploitation.
    • As a reminder, President AMLO presented the initiative following his proposal to increase government control of the electricity market failed on Sunday.
    • A ruling coalition of lawmakers, led by the president’s Morena party, fast-tracked the bill, getting lower house approval Monday.
    • At his morning press conference on Tuesday, AMLO said Mexico will review existing contracts for the extraction of lithium.
  • The Mexican peso underperformed during Tuesday’s session amid the news and significant pressure on US yields, however, with today’s reversal USDMXN resides back below the 20.00 mark, 0.3% lower on the day.
    • A bearish theme remains in place while price trades below this key short-term resistance. Attention is on the Apr 4 low of 19.7274. A break would confirm a resumption of the downtrend and pave the way for a move towards 19.5494, the Jan 21, 2021 low.
  • Economy Minister Tatiana Clouthier hosts an event at noon with Intel Mexico CEO Santiago Cardona on strengthening the semiconductor supply chain.
  • Tax authority chief Raquel Buenrostro to hold press conference - 11am Mexico City time.

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