Carlos Salinas de Gortari
Carlos Salinas de Gortari (; born 3 April 1948) is a Mexican economist and politician affiliated with the Institutional Revolutionary Party (PRI) who served as President of Mexico from 1988 to 1994. He is widely regarded as the most influential politician in Mexico over the last 30 years. Earlier in his career he worked in the Budget Secretariat eventually becoming Secretary. He was the PRI presidential candidate in 1988, and was declared elected on 6 July 1988 after a controversial electoral process and accusations of electoral fraud.
Carlos Salinas de Gortari
He was also known to have been the decision maker in who was the head boss of the Mexican cartels. He justified these actions by saying in private meetings that "he felt they could do their best in picking the better of the bad apples". These events, along with the fact that he was linked to personally overseeing who ran the heads of each Mexican cartel, together with the increasing current account deficit fostered by government spending, caused alarm among Mexican and foreign T-bill ("tesobono") investors, who sold them rapidly, thereby depleting the already-low central bank reserves (which eventually hit a record low of $9 billion). The economically orthodox thing to do, in order to maintain the fixed exchange rate (at 3.3 pesos per dollar, within a variation band), would have been to sharply increase interest rates by allowing the monetary base to shrink, as dollars were being withdrawn from the reserves. Given the fact that it was an election year, whose outcome might have changed as a result of a pre-election-day economic downturn, the Bank of Mexico decided to buy Mexican Treasury Securities in order to maintain the monetary base, and thus prevent the interest rates from rising. This, in turn, caused an even more dramatic decline in the dollar reserves. These decisions aggravated the already delicate situation, to a point at which a crisis became inevitable and devaluation was only one of many necessary adjustments. Ernesto Zedillo took office on December 1, 1994.