President Andres Manuel Lopez Obrador's controversial judicial reforms making Mexico the world's only country to elect all its judges by popular vote have spooked financial markets and investors.

Mexico's judicial reform overhauling the country's courts, which will allow voters to elect judges, officially took effect on Sunday after the text of the constitutional changes was published in the government gazette.

The plan, championed by Mexico’s president, would have voters elect judges at every level, dramatically restructuring the third branch of government.