Brazil’s Lula, Haddad to Discuss Central Bank Succession

Fernando Travaglini and Beatriz Reis
·2-min read

(Bloomberg) -- Finance Minister Fernando Haddad stated that he will talk with President Luiz Inacio Lula da Silva this week about the nomination of the next leader of the central bank, according to Valor Economico newspaper. They will also seek to establish a schedule for the appointments of other members to the bank’s board.

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The minister reiterated that it is up to Lula to determine when the decision will be made and who will be chosen, the report said.

Lula has already discussed the issue with Senate head Rodrigo Pacheco. The chamber is responsible for confirmation hearings and approval of the nominees.

Current central bank chief Roberto Campos Neto and two other directors’ terms end this year. Monetary Policy Director Gabriel Galipolo is widely considered the favorite to replace Campos Neto.

Lula’s administration is still leaning toward making its pick to lead the monetary authority in August, but wants to align with Pacheco to avoid wear and tear on the nominee while he awaits the hearing, says O Globo.

There is still no decision on the other appointees to the board, and invitations have not been made, according to the report, which cites unidentified members of the economic team.

No Obstacles

The government whip in the Senate, Jaques Wagner, said he does not see any obstacles for the approval of a possible Galipolo nomination, according to O Estado de S. Paulo. He stressed that he does not know if Galipolo will be the nominee, but said he suspects it will happen, says the newspaper.

Aligned

Minister of Institutional Relations Alexandre Padilha stated that negotiations on parliamentary budget amendments continue and that the meeting between the three branches of government at the beginning of this week brought alignment on the path that should be followed.

The Supreme Court’s decision to suspend mandatory budget amendments, in which the federal government is obliged to pay direct transfers of public resources indicated by lawmakers, increased tensions between the judiciary and Congress and led to a Tuesday meeting between the heads of the legislative and judiciary branches, as well as Lula Chief of Staff Rui Costa and other authorities.

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