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March 1999

Brazilian Central Bank: Will street credibility win the day?



The comparison between poacher and gamekeeper was inevitable from the moment the Brazilian government put forward Armínio Fraga Neto's name as the new central bank president in February. In a matter of weeks Fraga has gone from star Wall Street investor to stout defender of the real, a currency tattered by repeated attacks from traders.

The comparisons may continue dogging both Fraga and the government as Brazil endures one of its worst recessions ever, faces a possible debt crisis and struggles politically.

Fraga, 42, seems uniquely qualified as firefighter. He holds a doctorate...


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