Business

Peruvian new president confirms moderate as finance minister

What’s New in Peru

Peru’s new president, Pedro Castillo, has appointed a moderate left as his finance minister in a move that may go some way to calm the market after a few days of turmoil.

At a late-night ceremony in Lima on Friday, Castillo confirmed in a post the former World Bank economist Pedro Francke.

Franke was widely expected to get a job — castillo unexpectedly until Thursday Named the hardline left, Guido Bellido, as Prime Minister. It questioned the appointment of the minister: Moderates, including Franke, seemed hesitant about the idea of ​​working with Verido.

Franke wasn’t there when Castillo confirmed most of his cabinet on Thursday night. He left the venue shortly before the swearing ceremony and questioned whether he refused to work or was not offered. The post of Minister of Finance remained vacant.

On Friday, the market reacted badly. The Peruvian stock exchange fell 6%, but the currency Zol recorded the largest daily loss in seven years, overcoming the four-sole psychological barrier to the dollar for the first time.

After the market closed, Verido made a peace proposal to Franke, saying that the 60-year-old economist had “full support” to implement the economic program Castillo campaigned in the second round of the election. He won on June 6th..

The program is less radical than previous versions that have scared many investors, but it does require radical changes to the mining sector in Peru, the world’s second largest producer of copper.

Franke’s appointment will take place three days after the roller coaster in Peru.

Wednesday — 200th Anniversary of National Independence from Spanish Rule— Castillo I vowed to take office at a symbolic ceremony. A rural elementary school teacher who has never held public office, he welcomed the victory of the oppressed people of Peru.

The next day, he was a Marxist lawmaker who was seen by many as a scholar of the Shining Pass, a guerrilla group of the Mao Sawa East who wage bloody wars against the Peruvian nation in the 1970s and 1980s. The appointment surprised everyone.

Appointment The Castillo administration was in jeopardy As soon as it began, it alienated potential moderate and centrist allies.

Franke’s appointment may help to repair the damage to some extent, but Castillo can still struggle to get his agenda through Congress.

Peruvian new president confirms moderate as finance minister

Source link Peruvian new president confirms moderate as finance minister

Back to top button