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.
- 1 Tamir Rice: 12-year-old boy playing with fake gun dies after being shot by police in Ohio park
- 3 Naked free runner captured in breathtaking photographs above London's streets
- 4 Woman opens professional cuddling shop – gets 10,000 customers in first week
Tamir Rice: 12-year-old boy playing with fake gun dies after being shot by police in Ohio park
Heroin to be prescribed to Canadian addicts by doctors
Audacious North Korean kidnap plot foiled at Paris airport as 'Asian men' attempted to bundle student onto plane
Tower Bridge glass walkway 'smashed' by night-time visitor dropping bottle of beer
Revealed: the case against Bill Cosby – through the stories of his accusers
Rochester by-election: Ukip gains second MP as Tory defector Mark Reckless holds seat
'Beast of Bolsover' Dennis Skinner takes Ukip MP Mark Reckless to task moments after he is sworn in
Rochester by-election: Labour MP Emily Thornberry resigns after posting white van and England flags tweet
The young are the new poor: Sharp increase in number of under-25s living in poverty, while over-65s are better off than ever
France 'blocks' Russian sailors from boarding a warship
Green Party Caroline Lucas interview: 'We could be on the edge of something very big'
iJobs Money & Business
Negotiable: Argyll Scott International: Hi All, I'm currently recruiting for t...
£50000 - £60000 per annum + benefits: Argyll Scott International: A Business A...
£30000 - £35000 per annum + benefits: Ashdown Group: PR Marketing & Events Exe...
$80000 - $110000 per annum, Benefits: Bonus and Employee Investment Scheme: Se...