Former Soros aide to head Brazil central bank
Wednesday 03 February 1999
Arminio Fraga, who used to run the emerging markets fund at Soros Fund Management, flew to Brazil from New York to become the country's third central bank governor in three weeks. He immediately joined talks between the government and an International Monetary Fund team.
Mr Fraga, once confirmed by the senate, will replace Francisco Lopes, who devalued the Brazilian real on 13 January, the day he was appointed. The currency has since lost a third of its value against the dollar. Figures show that reserves have dwindled to $36bn, half their level six months ago. The government has halted publication of daily figures on capital flight.
The real strengthened by 10 per cent to 1.74 to the dollar at one point yesterday. Share prices in Sao Paolo fell 4 per cent as traders took profits, but later recovered ground.
The unexpected appointment drew nothing but praise. In five years to May 1998 the fund managed by Mr Fraga delivered a 184 per cent return, making it the best-performing emerging market performer.
David Lubin of HSBC Markets said: "He comes from the same intellectual mould as the people in the IMF and markets."
Mr Fraga, a Princeton-trained economist, worked at Salomon Brothers after his doctorate. He ran the international finance division of Brazil's central bank in the early 1990s before joining Mr Soros. He has recently taught at Columbia University in New York.
The Finance Ministry said the aim was to strengthen the central bank and there would be no change in policy.
- 3 Amal Clooney gives excellent response to fashion question at European Court of Human Rights
- 4 A bottle of wine a day is not bad for you and abstaining is worse than drinking, scientist claims
- 5 Isis publicly behead man in Syrian town square for 'insulting Allah' as he screams for help
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Michelle Obama highlights harsh restrictions faced by Saudi women after meeting King Salman without wearing a headscarf
Amal Clooney gives excellent response to fashion question at European Court of Human Rights
Sir David Attenborough interview: The one question about life that still baffles him
Isis publicly behead man in Syrian town square for 'insulting Allah' as he screams for help
9 reasons Greece's experiment with the radical left is doomed to failure
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
Greece elections: Syriza and EU on collision course after election win for left-wing party
British Muslim school children suffering a backlash of abuse following Paris attacks
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Liberal Democrat minister defends comments suggesting immigration causes pub closures
iJobs Money & Business
£13000 per annum: Recruitment Genius: This Pension Specialist was established ...
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...
£25000 - £35000 per annum: Recruitment Genius: A Technical Report Writer is re...
Competitive salary & benefits!: MBDA UK Ltd: MBDA UK LTD Indirect Procurement...