Brazil’s Lula nominates Bradesco head trader as central bank monetary policy director

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By Marcela Ayres

BRASILIA (Reuters) – Brazilian President Luiz Inacio Lula da Silva nominated Nilton David, head trader at Bradesco bank, to serve as the next monetary policy director at the central bank starting in 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 makeup of the nine-member committee responsible for setting borrowing costs, as Lula’s picks will secure a majority starting next year.

According to the central bank statement, Lula selected Gilneu Vivan, the current head of the central bank’s financial system regulation department, to succeed Otavio Damaso as director of regulation.

Additionally, 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 the central bank autonomy, passed in 2021, decoupled the terms of the president of the republic from those of the central bank’s top officials.

Currently, the committee is made up of four members chosen by Lula and five by his predecessor, former right-wing President Jair Bolsonaro. The balance will shift to 7-2 in January.

If confirmed by senators, David will replace Gabriel Galipolo, who is set to take over as central bank governor from Roberto Campos Neto, also in January.

Before joining Bradesco, David served as head of the Brazil and Mexico trading desk at Morgan Stanley (NYSE:) and has also held positions at institutions such as Canvas Capital, Citi and Barclays (LON:).

Lula has been a vocal 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 mitigate the sharp depreciation of the country’s currency – a decision currently overseen by Galipolo and soon to be handled by his successor.

Focus has largely centered on the monetary policy role, as it oversees the foreign-exchange desk and is typically filled by someone with extensive financial market experience.

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