Exclusive: Brazil’s Temer to overhaul economy, central bank to rescue confidence

The board of Brazil’s central bank would be replaced as part of a drive to overhaul management of the economy and adopt sweeping reforms to regain investor confidence in a possible government of Vice President Michel Temer, three people familiar with the plan told Reuters.

With President Dilma Rousseff likely to be suspended by the Senate by mid-May for allegedly breaking budget laws, Temer is already drafting an ambitious program to pull Latin America’s largest economy out of its worst crisis in a century.

Temer, a constitutional lawyer by profession, is gearing up to push through unpopular tax, pension and labor reforms and is tapping high-profile economists for the Herculean task of regaining confidence in the once high-flying economy.

One of the most pressing demands from investors is an overhaul of the central bank’s eight-member board, known as Copom, that has been accused of being susceptible to political pressure to bolster economic activity at the cost of high inflation.

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