Brazil's Central Bank head to be nominated Monday

In his first interview to the press, held Friday (May 16), Finance Minister Henrique Meirelles said he is set to nominate the president of the Central Bank next Monday (16). On the same occasion, Meirelles should unveil his economic team, as well as the heads of the public banks. The minister said a list with the appointments has been outlined, and a final decision should be made by the end of the week.

According to market rumors, current Central Bank President Alexandre Tombini is to remain in office up to the next Monetary Policy Committee (COPOM) meeting, early in June. Meirelles neither confirmed nor denied the information.

Meirelles, who led the Central Bank from 2003 to 2010, said he believes the inflation can be stabilized and driven towards the target. “Brazil's fiscal landscape will help the Central Bank in its task of convergence towards the target,” he maintained.

The only name confirmed by Meirelles was Tarcísio José Massote de Godoy, who was standing next to the minister during the interview. He is to serve as the ministry's executive secretary.

Godoy has worked as a career official for Finance and Control at the National Treasury since 1993. Meirelles went on to declare that the appointments for the public banks will be based on technical criteria, even though some of those to be nominated are affiliated to a political party. “Names will have my direct approval, regardless of who's responsible for appointing them.”

The three biggest state-run banks are Banco do Brasil, Caixa Econômica Federal, and the National Economic and Social Development Bank (BNDES).

Translated by Fabrício Ferreira