Government seeks discussions with five potential candidates prior to Álvaro Santos Pereira for the position of BdP.
New Governor Appointed for Banco de Portugal
After a five-year tenure, Mario Centeno's term as the governor of the Bank of Portugal has come to an end. His successor, Álvaro Santos Pereira, was appointed by the Portuguese government in July 2025.
Santos Pereira brings a wealth of international economic experience to his new role. He served as the Chief Economist at the Organisation for Economic Co-operation and Development (OECD) since June 2024, and before that, he was Director of Country Studies in the Economics Department at OECD for about a decade. Prior to his OECD work, he was an academic teaching economics at Simon Fraser University and the University of British Columbia in Canada.
In politics, Santos Pereira was the Economy Minister in the centre-right government of Pedro Passos Coelho, serving during Portugal’s Troika period. Despite his former ministerial role, Portuguese officials emphasize that he is independent for this central bank role as he has not held government office for over a decade and is not affiliated with any political party. His economic stance is described as pragmatic and reform-oriented rather than a strict 'hawk' on monetary policy. He advocates reforms to boost economic growth and improve public finances, including justice and public administration reforms.
The Bank of Portugal signed a contract in May with Fidelidade to buy a building for the future installations of the institution for 191.99 million euros. However, there are alerts from consultants of the Bank of Portugal, particularly regarding the licensing and the possible need for an environmental impact assessment in the construction of the parking lot. The Bank of Portugal has stated that it complies with all norms in the process of buying the building.
Mario Centeno's mandate was marked by the pandemic and the war in Ukraine, and it ended with a troubled finish, with some disagreements with the Minister of Finance. There were tensions between Centeno and Costa over the European budget and the rule introduced by the Eurogroup that would reduce Portugal's allocation. Centeno also had misunderstandings with Miranda Sarmento on topics such as the 'brain drain', the reduction of IRC, the public guarantee for young people to buy houses, and forecasts for a budget deficit.
The government's initial choice for the governor of the Banco de Portugal was economist Ricardo Reis, a professor at the London School of Economics. However, Reis declined the invitation due to compatibility issues stemming from the rules for appointment to the council of administration of the financial supervisor.
Vítor Gaspar, former Minister of Finance under Passos Coelho, was also in the running but declined the invitation due to another challenge in another organization. Pedro Machado, a former director of Legal Services and deputy director of the Prudential Supervision Department of the Banco de Portugal, invoked personal reasons to reject the invitation.
The government has announced that it will request an audit from the Inspectorate General of Finance regarding the process of building the new Bank of Portugal building. The appointment of Álvaro Santos Pereira as the governor of the Banco de Portugal is expected to bring stability and continuity to the institution, as it faces the challenges posed by the ongoing pandemic and geopolitical tensions.
Sources:
- Portuguese Economy Minister Resigns Amid Corruption Scandal
- Portugal's Central Bank Governor Steps Down After Five Years
- Portugal's New Central Bank Governor Brings International Experience
- Portugal's Banco de Portugal Buys Building for Future Installations
- Portugal's New Central Bank Governor Faces Alerts Over Building Purchase
- Portugal's Central Bank Governor Faces Controversy Over Transition from Ministry of Finance
- Portugal's New Central Bank Governor Faces Challenges Ahead
The appointed successor, Álvaro Santos Pereira, will manage the Bank of Portugal's finances in the realm of business, trying to stabilize and provide continuity amid ongoing pandemic and geopolitical tensions. His previous roles in international organizations and politics, such as the OECD and the Portuguese Ministry of Economy, have equipped him with a diverse background in both academic and governmental aspects of economics and politics.
