Central Bank: Galípolo has a mission and will be charged by Lula – 05/08/2023 – Market

Representatives of the so-called financial market, the group of professionals that moves economic indicators, were divided by the confirmation that President Lula decided to nominate the Executive Secretary of the Treasury, Gabriel Galípolo, to be Director of Economic Policy at the Central Bank.

Non-believers with the PT are convinced that Lula made the noise official. The government is going to leave the field of verbal criticism for action, installing a divergence capable of undermining Campos Neto’s administration from within. From this perspective, its transfer would be equivalent to installing an Executive outpost within the autarchy. Galípolo would have been scheduled to act as vice president of BC.

The group that leaves this claims that there is no surprise in the movement and that it has republican intentions. For this group, Galípolo is a moderate professional, with technical knowledge of how financial institutions work. His presence at BC would serve more to appease the mood.

This perspective, say its defenders, would have been reflected in the behavior of the Exchange, which did not even move with the announcement, made by the Minister of Finance, Fernando Haddad, at lunchtime, with the market active and operating.

Within the government, there are those who say that the movement is equivalent to granting an internship. Galípolo would stand by the monetary authority’s rites to become president of the autarchy when the time came.

No one has any doubts that the Ministry of Finance has won yet another internal discussion within the government. The first wave of names for the BC that was made public, in a leak attributed to the Civil House, was taken for granted, but the fact is that it did not succeed.

Back then, Campos Neto and the entire financial sector were taken by surprise by the early disclosure. What is said behind the scenes is that Haddad and Galípolo were irritated by the incident.

Now the version is different. Galípolo and Ailton Santos, the first black person appointed to be director of the autarchy, were names aired, tested. Everyone, in fact, was aware of the new strategy.

However, perceptions aside, here is a reflection proposed by a legal maxim: you don’t change the law to leave the rules as they are. Lula has been attacking the BC president for months for disagreeing with the monetary policy that sustains the basic interest rate at 13.75%.

This Saturday, at a press conference in London, he told the planet that the president of the Central Bank of Brazil has no commitment to his country. They are strong words.

It is difficult to imagine that announcing number two from the Treasury to BC shortly after returning from that trip would have a goal of zero result for the government. Galípolo has a mission and will be charged by the president.