Brazil's Bolsonaro does not rule out holding Goldfajn head of central bank


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SAO PAULO (Reuters) – Brazilian right-wing leader Jair Bolsonaro said on Saturday that he did not rule out keeping the famous central bank chief, Ilan Goldfajn.

FILE PHOTO: Presidential candidate Jair Bolsonaro is photographed at a press conference in Rio de Janeiro, Brazil on October 11, 2018. REUTERS / Ricardo Moraes

In command of the central bank since June 2016, Goldfajn has kept inflation control and was considered the best central banker by The Banker magazine for controlling inflation in the largest economy in Latin America.

"I do not know if it will be maintained, but what works needs to be kept," Bolsonaro told reporters in Rio, questioned about Goldfajn's future within the central bank.

Goldfajn is preparing to pull out by the end of the year, Bloomberg said Thursday, in a move that could deprive the country's new president of a widely respected steward of the economy.

PHOTO FILE: The President of the Central Bank of Brazil, Ilan Goldfajn, was seen after the inauguration ceremony of the new ministers at the Palacio Planalto, in Brasilia, Brazil, on April 10, 2018. REUTERS / Ueslei Marcelino

Since the Brazilian central bank is not totally independent, incoming presidents usually replace its head, causing the markets to fear political interference. Brazilian President Michel Temer will step down on 1 January.

According to a recent survey by Datafolha, Bolsonaro would have extended his lead over left-fielder Fernando Haddad, who is expected to be elected at the end of the poll on 28 October. Bolsonaro had 59% of the votes cast, compared to 41% for Haddad.

Bolsonaro also said Saturday that he planned to use astronaut Marcos Pontes as his government's science and technology minister.

A Conservative Congressman favored by the financial markets, Bolsonaro had already announced names for a ministry. The banker Paulo Guedes would be appointed Minister of Economy. Retired Army General Augusto Heleno Pereira would be his Minister of Defense, while Congressman Onyx Lorenzoni would be appointed Chief of Staff.

Bolsonaro also congratulated US President Donald Trump. "He wants to make America great and we want to make Brazil great," said the former army captain to reporters. Earlier this month, a Bolsonaro advisor announced that he would follow Trump's nationalist foreign policy agenda.

Report by Rodrigo Viga Gaier in Rio de Janeiro; Written by Carolina Mandl, edited by Franklin Paul

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