UPDATE 2-Mexico cenbank autonomy must be 'unrestricted,' president's nominee says

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MEXICO CITY, Dec 1 (Reuters) - The Mexican president's choice for the next governor of the central bank underlined her commitment to the Bank of Mexico's independence on Wednesday, days after her nomination roiled markets and stirred concern about political interference.

Speaking at a hearing with senators, Victoria Rodriguez, President Andres Manuel Lopez Obrador's pick to head the central bank, said there should be no curbs on the autonomy of the institution because of its importance to combating inflation.

Rodriguez was thrust into the limelight last week when Lopez Obrador said he had withdrawn his previous nominee for governor, former finance minister Arturo Herrera. The decision raised concerns among analysts about the bank's independence, and rattled the peso currency https://www.reuters.com/markets/us/mexican-president-picks-finance-official-run-central-bank-would-be-first-woman-2021-11-24.

Facing questions from senators about her qualifications, Rodriguez, who would be the first woman to head the central bank, known as Banxico, identified inflation as damaging for the economy in general but in particular for the poor.

"For this reason, I want to underline the importance of maintaining a single mandate, and an unrestricted respect for the Bank of Mexico's autonomy," Rodriguez said.

Central bank independence has been crucial in anchoring long-term inflation expectations in Mexico, she argued, noting that Banxico's mandate was clearly defined as a duty to guarantee price stability and one that should be upheld.

Rodriguez was also asked repeatedly how she viewed the central bank's reserves. She stressed their importance for guaranteeing the stability of Mexico's financial system and how they should be managed strictly in accordance with the law.

Rodriguez, who has served as a deputy finance minister under Lopez Obrador, would replace Alejandro Diaz de Leon as the head of Banxico if she is ratified by the Senate in a vote expected on Thursday. Diaz de Leon's term concludes at the end of 2021. (Reporting by Dave Graham Editing by Daniel Flynn and Leslie Adler)