Current head of the monetary authority believes that Galípolo’s hearing will take place “naturally” and the transition will be “smooth”
The president of BC (Central Bank), Roberto Campos Neto, said this Thursday (26.Sep.2024) that it is “wonderful“the monetary authority has 2 presidents. The director of Monetary Policy, Gabriel Galípolo, was appointed to replace him in command of the institution.
Galípolo will be questioned by the CAE (Economic Affairs Committee) in the Senate on October 8. If approved, he will take office in January 2025. Campos Neto commented that a smooth transition is being made, as he had promised in August.
“Some people ask, ‘Isn’t it problematic to have two presidents?’ I say, ‘No, it’s wonderful to have two presidents, because it means that we are actually making the transition as smooth as possible.”declared Campos Neto.
The Director of Monetary Policy has sought support from senators to approve the nomination to the Senate. Campos Neto believes that the voting and hearing process will proceed with “nationality”.
“I have spoken to some senators about the importance of holding the hearing and making a smooth transition in the institutional part of the Central Bank”he said.
Campos Neto presented the Quarterly Inflation Report this Thursday (26.Sep.2024). Here is the full of the document (PDF 12 MB). The BC increased its estimate for Brazil’s GDP (Gross Domestic Product) growth to 3.2%. The monetary authority also increased the probability of Brazil’s inflation remaining above the target ceiling from 28% to 36%.
NOMINATION OF GALÍPOLO TO THE BC
The institution’s current director of Monetary Policy was appointed by the president Luiz Inácio Lula da Silva (PT) and needs approval from the Upper House to take on the new role. See the process that Galípolo will have to go through the following process:
- the government sends the Senate the nomination of the president of the BC by message;
- the message is read in plenary and sent to the Senate’s CAE (Economic Affairs Committee);
- a rapporteur is appointed, who will issue an opinion to certify whether or not the person appointed is qualified to perform the role;
- the nominee is questioned by the CAE and the committee analyzes whether to approve it or not. Of the 27 votes, a simple majority is needed (half of those present + 1);
- the opinion, with approval or rejection, is read in the Senate plenary;
- the 81 senators analyze the name of the nominee and vote in favor or against;
- to be approved in the plenary, it needs a simple majority;
- If approved, the Senate notifies the presidency, which publishes the name in the Official Gazette of the Union.
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