Opposition Congress backed Pedro Castillo: Central Bank chief will remain in office

The President of the Peruvian Congress offered her support to the head of the Central Bank on Friday Julio Velarde and he assured that his permanence in office, requested by the new left government, would give peace to the markets.

María del Carmen Alva and Velarde spoke at a meeting in which the head of parliament expressed “the interest and concern of members of Congress regarding the economic situation of Peruvians”, according to a congressional statement.

“As well, she voiced her support as congresswoman if she decides to stay in office, saying it would “reassure the markets”.said the statement posted on the Legislative Assembly’s website.

Alva is a member of the right-wing Popular Action Party in Congress with an opposition majority. The ruling Peru Libre Marxist party has only 37 seats out of 130 deputies.

Peru’s stock market and currency have been hit since Castillo appeared in the polls and later came to power. The scenario was complicated when the new president appointed a prime minister of the extreme left, who belongs to the Marxist party that helped him win the elections.

Peruvian Economy and Finance Minister Pedro Francke said on Monday that Velarde “viewed favorably the proposal” to remain in power under left-wing President Pedro Castillo.

Velarde’s tenure, in office since 2006, culminates with the five-year presidential term in July. The bank’s board of directors is made up of seven members, four of whom are appointed by the government and the others by Congress.

The post of President of the Central Bank must be proposed by the government and ratified by the unicameral Congress.

According to Congress, Velarde said “he will make efforts to promote economic recovery and maintain monetary targets” and that the high level of inflation in Peru is temporary and “is expected to normalize in the coming months”.

In addition, Velarde told Alva he expects the local economy growth target of 10.5% to be met this year.

The Peruvian opposition this week demanded that the President of Peru, Pedro Castillo, change several ministers to approve the inauguration of his government, whose Prime Minister Guido Bellido, started a series of contacts with various parties.

Precisely, Bellido is one of the members of the Executive which generates the most rejection of the opposition to be an official member of the Congress of the more orthodox Marxist left which represents the Peru Free party and also for being accused of alleged terrorism apologies.

(With information from Reuters)

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