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Peru’s President Asks Central Bank Chief Julio Velarde to Stay for a New Five-Year Term

Officials frame the appeal as a signal of stability, with the decision expected from the next government.

Overview

  • Prime Minister Ernesto Álvarez disclosed that President José Jerí made the request during an Oct. 29 meeting with Velarde and Economy Minister Denisse Miralles focused on economic and monetary stability.
  • Miralles said the choice to remain rests with Velarde and noted he is assembling a technical team to succeed him at the Central Reserve Bank of Peru.
  • Álvarez indicated the formal determination on Velarde’s continuation will be made by the incoming administration, and Velarde has not commented publicly.
  • Officials present the appeal as reassurance for investors as Fitch recently noted vulnerabilities in the executive branch, while analysts caution against perceptions of encroachment on the central bank’s autonomy.
  • Velarde has previously identified internal officials Adrián Armas and Paul Castillo as possible successors.