- According to the new autonomy law, the approval of the president’s nomination will continue to depend on Senate scrutiny;
- But, without coinciding mandates, the Central Bank president’s appointment is expected to be less politicized and more based on expertise.
On Tuesday, Brazil‘s President Jair Bolsonaro appointed Central Bank chief Roberto Campos Neto and seven directors to fulfill their fixed-term mandates on the monetary authority’s board. The appointments were published in the Official Gazette, a procedural step after Congress in February approved central bank autonomy that established fixed terms for directors that no longer coincide with the presidential election cycle.
Campos Neto and directors Carolina de Assis Barros and Otavio Ribeiro Damaso will remain in their positions until Dec. 31, 2024, according to the decree. Directors Fabio Kanczuk and Joao Manoel Pinho de Mello will serve until Dec. 31, 2021, Bruno Serra and Paulo Sergio Neves de Souza will serve until Feb. 28, 2023 and Mauricio Costa de Moura‘s term ends on Dec. 31, 2023.
Fernanda Nechio said last month she would step down soon as the central bank’s international affairs and corporate risks director, citing personal reasons. Her replacement, Fernanda Magalhaes Rumenos Guardado, will serve until Dec. 31, 2023 if she is approved by the Senate, the decree said.
According to the new autonomy law, the approval of the president’s nomination will continue to depend on Senate scrutiny. But, without coinciding mandates, the Central Bank president’s appointment is expected to be less politicized and more based on expertise.
The new rule also separates the Central Bank from the Ministry of Economy and considers the institution as a special authority with no ties, tutelage or hierarchical subordination to any ministry, guaranteeing technical, operational, administrative and financial autonomy.