This week marked another episode in the Latin American Greek tragedy known as Brazil. I call this episode, “At least we’re not Argentina.”
We are back to wondering whether Finance Minister Joaquim Levy will resign. Despite the countless number of times both Levy and President Dilma Rousseff said he was staying put, the local media are now naming his replacement. This one is interesting: former central banker Henrique Meirelles.
This is why it’s interesting on the margin: Levy is at the Finance Ministry because ex-president Luiz Inacio Lula da Silva recommended him to Dilma. Levy was the Treasury Secretary under Lula. Meirelles was the Central Bank governor under Lula. Lula was the most popular president in Brazil since Getulio Vargas. If Meirelles is chosen to replace Levy, I think the reading of the tea leaves goes something like this: