🔺 What to do when markets are at an all-time high? Find smart bargains, like these.See Undervalued Stocks

Lula eyes Galipolo among joint nominations for Brazil central bank, sources say

Published 08/15/2024, 04:25 PM
Updated 08/15/2024, 05:05 PM
© Reuters. FILE PHOTO: A drone view shows the Central Bank headquarters building during sunset in Brasilia, Brazil, June 11, 2024.  REUTERS/Adriano Machado/File Photo

By Marcela Ayres and Bernardo Caram

BRASILIA (Reuters) - Brazil's President Luiz Inacio Lula da Silva is looking at submitting all four of his upcoming nominations for the board of the central bank at once, including Gabriel Galipolo for the bank's presidency, people familiar with the matter told Reuters.

The nominations are expected in the coming weeks, according to Finance Minister Fernando Haddad. If approved by the Senate, Lula's choices will take office in 2025, giving the leftist president seven picks on the central bank's nine-member interest rate-setting committee, known as Copom.

The presidential palace did not reply to a request for comment. The Finance Ministry and central bank declined to comment.

Galipolo, the central bank's monetary policy director, has long been seen as a strong contender to replace governor Roberto Campos Neto, whose term ends in December, said seven sources, who requested anonymity to discuss the confidential deliberations.

Fernando Honorato, chief economist at Banco Bradesco, is being considered for Galipolo's current role, as he has good relations with the Finance Ministry and other government officials, said three sources. One of the sources noted that other candidates are still in the running.

Bradesco said it was "unaware of the matter."

Another source said that Marcelo Kayath, a partner at QMS Capital and former managing director at Credit Suisse in Brazil, had been approached for the position but declined.

Kayath declined to comment on the matter.

Two sources said that Gilneu Vivan, the current head of the department regulating the financial system, is one of the names being considered for the director of regulation, a seat now held by Otavio Damaso.

The same two sources said Juliana Mozachi, head of the conduct supervision department, is a strong candidate to become director of institutional relations, replacing Carolina Barros.

© Reuters. FILE PHOTO: Brazilian President Luiz Inacio Lula da Silva speaks to foreign media at Planalto palace in Brasilia, Brazil, July 22, 2024. REUTERS/Andressa Anholete/File Photo

Her appointment would also ensure at least one woman on the rate-setting board, one of the sources noted.

Traditionally, the directors of regulation and institutional relations are career central bank officials, unlike the monetary policy director, who runs the foreign exchange desk and often comes from a background in the financial markets.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.