By Marcela Ayres
BRASILIA (Reuters) – Brazilian President Luiz Inacio Lula da Silva has nominated Nilton David, chief trader at Bradesco bank, to serve as the next director of monetary policy at the central bank from January, the institution said on Friday.
The appointment was accompanied by two additional nominations, all of which must still be confirmed by the Senate. They will mark a shift in the composition of the nine-member committee responsible for setting financing costs, as Lula’s choice will secure a majority from next year.
According to the central bank’s statement, Lula Gilneu Vivan, the current head of the central bank’s financial system regulation department, has been chosen to succeed Otavio Damaso as director of regulation.
In addition, Izabela Correa, currently Public Integrity Secretary at the Comptroller-General Office, was chosen to replace Carolina Barros as Director of Institutional Relations.
A law granting central bank autonomy, passed in 2021, delinked the terms of the President of the Republic from those of the central bank’s top officials.
Currently, the commission consists of four members, chosen by Lula and five by his predecessor, former right-wing President Jair Bolsonaro. In January the balance shifts to 7-2.
If confirmed by senators, David will replace Gabriel Galipolo, who will also take over as central bank governor from Roberto Campos Neto in January.
Before joining Bradesco, David was head of the Brazil and Mexico trading desk at Morgan Stanley and also held positions at institutions including Canvas Capital, Citi and Barclays.
Lula has been an outspoken critic of Campos Neto since taking office last year, with members of his Workers’ Party repeatedly calling for intervention in the foreign exchange market to ease the sharp depreciation of the country’s currency – a decision currently overseen by Galipolo and which will be taken soon. be handled by his successor.
Attention has largely focused on the role of monetary policy, as it oversees the currency department and is usually filled by someone with extensive experience in financial markets.
(Reporting by Marcela Ayres; Editing by Kylie Madry)
