Secondly, Deputy Governor Daniel Mminele’s second term ended on June 30 and he retired from the central bank. There are now two vacancies on deputy governor level. While Ramaphosa has met with the central bank’s board, Kganyago and the deputy finance minister to discuss vacancies in its executive, he is yet to announce who will fill them.
INDIA
India’s new central bank governor, Shaktikanta Das, is seen as someone more amenable to the government’s requests on relaxing tough regulations imposed on struggling banks and easing monetary policy to boost growth. He succeeded Urjit Patel, who resigned after a public row with Prime Minister Narendra Modi’s government, and has already overseen rate cuts of 50 basis points this year.
Das has also taken a more conciliatory approach toward the banking sector and businesses, many of which are struggling to repay loans. Patel wanted to clean up the banking system, and repeatedly clashed with the government about relaxing lending rules for some weak state-run banks. Das has eased those curbs in recent months.
The central bank then took another hit when Deputy Governor Viral Acharya, one of its most outspoken officials, unexpectedly announced in June that he was standing down.
MEXICO
While President Andres Manuel Lopez Obrador has stayed away from criticizing Banxico despite interest rates at a 10-year-high, one of his appointees, Gerardo Esquivel, took issue with a recent central bank statement, calling it too hawkish. By the end of next year, Lopez Obrador’s appointees will hold a majority of Banxico’s board, and the bank may lean toward helping the president reach his growth goals.
ARGENTINA
Argentina’s bid to create an independent central bank -- something the IMF wants as part of its loan agreement with the country -- is mired in political uncertainty as the nation faces a presidential election in October. President Mauricio Macri sent a bill to Congress in March, but its prospects aren’t clear amid the tight electoral race and Argentina’s recession. He proposed last month that all election candidates sign a 10-point plan that includes a commitment to an independent central bank. So far, none of Macri’s potential opponents has signed on, or signaled they would.
BRAZIL
One monetary institution may actually get a break from politics: Brazil’s central bank has enjoyed de-facto autonomy on interest rates, but no legal guarantees protecting its board against political meddling. That may change if Congress approves President Jair Bolsonaro’s bill granting formal autonomy to the institution. According to the proposal, expected to be voted on this year, the central bank chief could no longer be fired by the president, and board members would have four-year terms approved by the Senate.
PAKISTAN
The central bank has been at the forefront of dealing with the nation’s budget deficit blowout by the most aggressive rate hikes and currency devaluation in Asia. Its independence has come into question after Prime Minister Imran Khan replaced the governor in May as part of an overhaul of his economic team for poor performance. Late last year, he announced plans to make the central bank report any currency adjustments to a committee after a fifth devaluation of the rupee in 2018.
The central bank is now led by Reza Baqir, a former IMF official. Pakistan this month secured a $6 billion bailout from the fund, which wants a “strengthening” of the institution’s “operational independence and mandate.”
This article was provided by Bloomberg News.