The mandate of two Central Bank directors ends this Tuesday; it will be up to Lula to decide on positions

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It will be up to President Lula to decide whether to reappoint current directors or choose new ones. The mandates of two Central Bank (BC) directors end this Tuesday (28). It will be up to President Luiz Inácio Lula da Silva to decide whether to restore the directors to their positions or choose new members. They are: Bruno Serra Fernandes, Director of Monetary Policy Paulo Souza, Director of Inspection It will be the first change in the composition of the Central Bank during the Lula government. The term of office is four years, with the possibility of reappointment. The choice comes amid criticism from Lula and members of the government at the Selic level, the economy’s basic interest rate, which is at 13.75% per year. The directors and the president of the BC participate in the Monetary Policy Committee (Copom), responsible for setting the interest rate. There are, in all, nine members, including the president of BC, all with one weight vote. However, according to the Minister of Finance, Fernando Haddad, the decision on the positions will not come out this week. The government is involved in the discussion about the return of federal taxes on gasoline and alcohol, among other issues. Central Bank President Roberto Campos Neto Mateus Bonomi/Agif/Estadão Content In an interview with the Roda Viva program, BC President Roberto Campos Neto said that director Paulo Souza intends to remain in office for another four years. “It’s a great case of reappointment, but again, it’s the government’s prerogative,” he said. Fernandes, on the other hand, would not have the intention of being reappointed. How the transition works While the president’s decision is not made, Serra e Souza can choose to stay in office until the definition of who the new directors will be or if they will be reappointed, if they want, as is the case of Souza. If they are reappointed for a new term, they will not need to go through a new Senate hearing. If Lula chooses new names, those chosen will need to go through the sabbath. Central Bank autonomy eases the weight of distrust of political interference Other changes Until the end of his term, President Lula will still have the right to decide whether to reappoint or replace seven more directors, including the president of the Central Bank, Roberto Campos Neto: Fernanda Guardado, Director of International Affairs and Corporate Risk Management, with term of office until December 31, 2023 Maurício Costa de Moura, Director of Institutional Relations, Citizenship and Conduct Supervision, with term of office until December 31, 2023 Carolina de Assis Barros, Director of Administration, with term of office until 31 December 2024 Otávio Damaso, director of Regulation, with term of office until 31 December 2024 Roberto Campos Neto, president of the Central Bank, with term of office until 31 December 2024 Renato Gomes, director of Financial System Organization and Resolution, with mandate until December 31, 2025 Diogo Guillen, Director of Economic Policy, with mandate until December 31, 2025 With that, until the end of 20 24, Lula will be able to appoint 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. 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. He needs to wait for the end of each one’s mandate to change or keep the names chosen by the previous government.

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