Central Bank board will only be majority appointed by Lula in 2025

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Even with the appointment of Gabriel Galípolo and Ailton de Aquino Santos, until the end of 2024, four other directors still have mandates in office and will need to be replaced gradually. See this article for a list of when the terms of office of the BC’s presidents end. Central Bank headquarters in Brasília Raphael Ribeiro/BCB Even with the appointment of Gabriel Galípolo and Ailton de Aquino Santos for the areas of monetary policy and supervision, the Central Bank’s collegiate board will only be appointed by President Lula (PT) in 2025 By the end of 2024, four other directors still have terms in office and will need to be replaced gradually, part of them before and part of them with or after the departure of Roberto Campos Neto from the presidency of the BC. Lula’s first nominations for directors at the Central Bank were confirmed last week, when finance minister Fernando Haddad announced Gabriel Galípolo, executive secretary of the Treasury, as chosen to assume the directorate of monetary policy at the Central Bank. Share on WhatsApp Share on Telegram The nomination of Galípolo depends on the approval of the Federal Senate, as well as that of Ailton de Aquino Santos for the supervisory board, also nominated by Lula. On the day of the announcement, Fernando Haddad reinforced that the nominations followed the path of “mesh of fiscal and monetary policies”. Every 45 days, the Monetary Policy Committee (Copom) – formed by the president and the eight directors of the Central Bank – defines the basic interest rate, the Selic, all with the right to vote weight one. If approved by the Senate, Galípolo and Ailton Santos will be part of the group in the discussions. The high level of the basic rate has been a frequent target of criticism from President Lula, who claims that the conduct of monetary policy by the Central Bank has harmed the country’s growth. Currently, the Selic is at 13.75% per annum. Unlike previous administrations, Lula could not choose the president and board of the BC when he took office, as the law that gave autonomy to the monetary authority granted fixed mandates to the board of the institution. The term of office is four years, with the possibility of reappointment. Therefore, Lula needs to wait for the end of each one’s mandate to change or keep the names chosen by the previous government. By the beginning of 2025, Lula may have nominated seven of the nine directors that make up the Central Bank, including the president. Campos Neto, for example, has stated several times that he has no intention of remaining at the BC for a new term. The acting directors with the longest term to leave office are Renato Dias de Brito Gomes, director of Financial System Organization and Resolution, and Diogo Abry Guillen, director of Economic Policy. Both were appointed by former president Bolsonaro and will remain in office until December 31, 2025. See below the timeline of terms for the BC’s president directors Nominated, but still need Senate approval: Gabriel Galípolo for the Monetary Policy Board Ailton Aquino Santos for the Supervisory Board Who leaves in 2023: Fernanda Guardado, director of International Affairs and Corporate Risk Management – term of office until December 31, 2023 Maurício Costa de Moura, director of Relationship, Citizenship and Conduct Supervision Maurício Costa de Moura – mandate until December 31, 2023 Who leaves in 2024 Roberto Campos Neto, president of the Central Bank – mandate until December 31, 2024 Carolina de Assis Barros, director of Administration – mandate until December 31, 2024 Otávio Ribeiro Damaso, director of Regulation Otávio Ribeiro Damaso – mandate until December 31, 2024 Who leaves in 2025 Renato Dias de Brito Gomes, Director of Financial System Organization and Resolution – mandate until December 31, 2025; Diogo Abry Guillen, director of Economic Policy – mandate until December 31, 2025

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