Mexican President Felipe Calderón’s Government Puts Limits On Cash Exchanges; Hopes To Hinder Drug Cartels

June 16, 2010 7:00 am 0 comments

dollarToday in Latin America

Top Story — In an apparent attempt to stop drug cartels from laundering money, the Mexican government announced Tuesday strict limits on the exchange and deposit of U.S. dollars in the country’s banks.

The limits were announced as President Felipe Calderón faces criticism for his administrations failure to intercept the elicit money that cartels bring into Mexico.

“For the last few years we’ve seen the Mexican banking system receiving a very large amount of U.S. dollars in cash, far beyond what could be explained by the activities and dynamics of the economy in Mexico,” said Finance Minister Ernesto Cordero, according to the Los Angeles Times.

A U.S. and Mexican joint report stated that cartels send between $19 billion and $29 billion a year from the U.S. to Mexico, with just under half that amount making its way into banks.

The limits state that tourists and Mexican citizens without bank accounts will be able to exchange up to $1,500 a month, while Mexicans with bank accounts can change a maximum of $4,000.

Mexico has seen a surge in drug-related violence in June and officials believe that the limits will help reduce this violence, which some attribute to turf battles between rival cartels. Much of the money brought into Mexico from the United States is used to purchase high-powered assault weapons.

“This measure is consistent with a strategy of fighting not just drug trafficking but also organised crime,” Cordero said, according to the BBC. “We have to close the way to dollars from sources that may be illegal.”

Just Published at the Latin America News Dispatch

  • Displacement of peasants by armed actors continues to plague Colombia, according to Marco Romero of the Consultancy for Human Rights and Displacement (CODHES). Mike Samras reports on Romero’s talk in Washington.
  • Check out this weekend’s World Cup schedule and the Latin America News Dispatch staff picks to win it all.
  • Read Alison Bowen’s new piece, “Documented Immigrants Should Not Be Deported For Minor Drug Infractions, Supreme Court Says.”
  • Headlines from the Western Hemisphere

    North America

    Caribbean

    Central America

    Andes

    Southern Cone

    Image: Photos8.com @ Flickr.

    Subscribe to Today in Latin America by Email

    Leave a Reply


    Other News

    • Mexico North America Today in Latin America Mexican Troops Executed Victims in June Slayings, Rights Body Finds

      Mexican Troops Executed Victims in June Slayings, Rights Body Finds

      Top Story — Mexican troops executed up to 15 of the 22 suspected gang members killed in June in the small town of San Pedro Limón, according to an investigation by the government’s human rights agency. The account by Raúl Plascencia, president of the commission, contradicted several prior versions of a murky story offered at various stages by the military, the Attorney General’s office and an eyewitness. Plascencia called for prosecutors to investigate a potential cover-up by military officials. At […]

      Read more →
    • Caribbean News Briefs North America As World Series Begins, So Does ‘Latin American Pipeline’ to MLB

      As World Series Begins, So Does ‘Latin American Pipeline’ to MLB

      When the opening pitch is thrown Tuesday night in game one of the World Series, a number of Latin American players will be front and center under the bright stadium floodlights. What won’t be on display, however, are some of the darker stories behind how many Latin Americans make it to play in Major League Baseball in the first place. This season, Latin American players made up close to a quarter of all MLB players — a staggering 86 percent of […]

      Read more →
    • Chile Southern Cone Today in Latin America Pinochet Bodyguard and Ex-Mayor Arrested in Santiago

      Pinochet Bodyguard and Ex-Mayor Arrested in Santiago

      Top Story — Chilean authorities have arrested a former aide to Gen. Augusto Pinochet, accusing him of committing various atrocities under the 1973-1990 military dictatorship. A judge on Monday ordered the arrest of retired military colonel Cristian Labbe on charges of “unlawful association” with a group that ultimately became the DINA secret police force. Labbe was allegedly involved in the murder of 13 people under Pinochet’s dictatorship. Those 13 people, investigators found, were tortured and executed at the notorious Tejas […]

      Read more →
    • Caribbean Cuba Today in Latin America Latin American Ministers Will Meet in Havana to Discuss Ebola Fight

      Latin American Ministers Will Meet in Havana to Discuss Ebola Fight

      Top Story — Top health officials from several Latin American countries are meeting today in Havana, Cuba, to discuss joint efforts to combat Ebola, as fears grow over the virus’ potential to spread to the region. Leaders from the socialist ALBA bloc, which includes Cuba, Venezuela, Bolivia, Ecuador, Nicaragua and several Caribbean countries, will meet to coordinate efforts following unilateral travel bans by several countries in the region. On Saturday, retired Cuban leader Fidel Castro penned a column in the […]

      Read more →
    • Brazil Southern Cone Today in Latin America Brazilian Man Confesses to Killing 39 People, Attempts Suicide in Jail

      Brazilian Man Confesses to Killing 39 People, Attempts Suicide in Jail

      Top Story — A Brazilian man confessed to committing at least 39 murders after police arrested him in the city of Goiânia on Thursday after a 70-day investigation. Thiago Henrique Gomes de Rocha, a 26-year-old security guard, seems to have targeted women, homeless people and homosexuals. De Rocha, who committed the murders over three years, approached his victims on a motorcycle before demanding their belongings and then shooting them. Police noted de Rocha’s “coldness” and extreme rage when recounting his […]

      Read more →
    • Andes Today in Latin America Venezuela Falling Oil Prices Raise Worries of Venezuela Default, Crisis

      Falling Oil Prices Raise Worries of Venezuela Default, Crisis

      Top Story — Analysts are worried about a new phase of economic chaos in Venezuela as falling oil prices continue to take their toll. Insurance rates on the country’s debt shot up Wednesday to a new high, more than three times the size of the rate in late June, after a drop in oil prices raised worries the country may fail to pay off its obligations to foreign bondholders. The spike in Venezuela’s bond insurance rates means it costs investors […]

      Read more →
    • Caribbean Haiti North America Today in Latin America U.N. Extends Controversial Peacekeeping Mission in Haiti

      U.N. Extends Controversial Peacekeeping Mission in Haiti

      Top Story — The United Nations Stabilization Mission in Haiti (MINUSTAH) will be renewed for another year, the U.N. Security Council announced on Tuesday. The council, composed of 15 nations, unanimously decided to renew the MINUSTAH mandate, though the number of military personnel in Haiti will be reduced from 5,000 to 2,370. The number of police personnel will remain unchanged. MINUSTAH was initially created in 2004 after former President Jean-Bertrand Aristide was ousted in a coup, leading to violence and […]

      Read more →
    • Mexico North America Today in Latin America Mexican Radio Host Shot Dead on the Air

      Mexican Radio Host Shot Dead on the Air

      Top Story — Mexican activist and radio host Atilano Roman Tirado was shot on-air during his weekly program Oct. 11 in the state of Sinaloa. Two gunmen forced their way into the radio studio of Fiesta Mexicana where Tirado hosted his Saturday morning program “Así es mi Tierra.” Listeners of the program could hear a shot fired around 10:40 a.m. followed by a co-worker’s voice saying, “he killed him.” Programming on the station did not resume for another 30 minutes. […]

      Read more →
    • Andes Bolivia Dispatches Bolivians in New York Cast Votes for President, Favoring Opposition

      Bolivians in New York Cast Votes for President, Favoring Opposition

      NEW YORK – When Bolivians in New York City cast their votes in a presidential election Sunday, most of them went against the trend that swept President Evo Morales into his third term. While Morales won around 60 percent of the vote in Bolivia, New York voters gave him just over a quarter of their vote, preferring instead the opposition candidate Samuel Doria Medina. The remote election in New York was held at a public school in the Latino enclave […]

      Read more →
    • Mexico North America Today in Latin America Mexico Arrests Another Drug Cartel Kingpin

      Mexico Arrests Another Drug Cartel Kingpin

      Top Story – Vicente Carrillo Fuentes, alleged leader of Mexico’s Juarez cartel, was captured in the Mexican city of Torreon, the Associated Press reports. This is the second arrest in two weeks of a major Mexican cartel leader, following that of Hector Beltrán Leyva, of the Beltran Leyva organization on Oct. 1. Nicknamed “The Viceroy,” or “The General,” Fuentes had a $5 million reward for his arrest in the United States and a $2.2 million reward in Mexico. He took […]

      Read more →