25 February 2002

 

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O'Connell ON THE WAY OUT
Now that the introduction of euro notes and coins has been cleanly executed, Maurice O'Connell, governor of the Central Bank of Ireland, feels it is time to let go. After eight years as governor, he is set to relinquish his position on 10 March. John Hurley has been announced as his successor: he is currently secretary general of the Department of Finance as well as a member of the board of the central bank. He will take charge on 11 March.

O'Connell has had an unusual career as central banking careers go, doing a postgraduate degree in Ancient Classics, and went on to teach for a number of years. He was appointed as governor in 1994 and had already served a full seven year term before he was reappointed last May to serve a second term. However, he made it quite clear at the time that he would stay on only until the euro changeover was complete. That task has now been accomplished.

Indeed, the bank is so proud of its handiwork that it organised a staff party on Friday 22 February to celebrate the successful changeover to the euro. All of the bank's staff were invited to the event which was held in the bank itself. O'Connell made a short speech warmly congratulating the staff for their role in the smooth introduction of the euro. http://www.centralbank.ie/mainpage.asp

 

Russian CENTRAL BANK GOVERNOR SHOWS SIGNS OF EXHAUSTION
In an interview given on February 18 to a Russian television show, Viktor Geraschenko sounded unenthusiastic about continuing into a second consecutive term - in fact his third term overall as he did a stint as governor in the early 1990s. When asked if the president was likely to offer him to stay on for a second term, he responded: "I think that the president has so many troubles that I am horrified that he will have to think about that too. So, I am not thinking about it." Pressed by the interviewer, he replied: "My thinking is very simple. I have worked in the banking system for 41 years and without bragging I must say that I have been working very hard. I wouldn't like to retire at 70." Still eager for a solid response, the interviewer pushed further: would he like to work more? "On the contrary." So you don't want to work more?! "That's not what I said. If I had said it, they would come down on me like a ton of bricks at work."

It can't be easy to play such a fine balancing act, to be constantly under such close public scrutiny, and one can sympathise with Geraschenko for tiring of his role. But at least he plays his part with good humour. In another part of the interview, when accused of being cunning, he protested, "I am a very simple man". When asked what the exchange rate would be at the end of the year, he parried, "We are not a weather office, we issue no forecasts"! http://www.cbr.ru/eng/today/directors_board/


Faites VOS JEUX!
As if the recent round of betting over who might succeed Wim Duisenberg's following the announcement of his departure date was not enough, the European press has now initiated a new sequence of speculation. Who is to succeed Christain Noyer? He completes his four year term on May 31. The most favoured candidates are the governors of the central banks of the six countries that have not yet been represented on the ECB's board: Belgium, Ireland, Austria, Greece, Luxembourg and Portugal. Well, Ireland can be ruled out now that O'Connell is soon to leave. Belgium too, as Guy Quaden has recently roundly stated: "I've been governor for only three years and there is enough work here for me. I'm going to stay in Brussels." All eyes on the remaining four; and the Financial Times is hedging its own bets on Austria and Portugal. Greece may lack allies, while Luxembourg may be too small. But Noyer is not the only one on the out. There has also been gossip about who might take the place of the Finnish board member Sirkka Hamalainen, whose term ends in 2004. The Austrians have touted their own deputy governor, Gertrude Tumpel-Gugerell, for the position. Let the games begin! http://globalarchive.ft.com/globalarchive/article.html?id=020220000071&query =Guy+Quaden

Kazakh CENTRAL BANKERS PRAISEWORTHY
It seems that in Kazakhstan central bankers are doing the right thing. Grigory Marchenko, the governor of the central bank, has been told by his president that "the country needs him" and that he deserves "much credit" for the state of Kazakhstan's esteemed financial system. This was in stark contrast to what the president had to say about the national companies, which received a severe dressing down: he accused them of being "feudal principalities" and their leaders "princelings". Meanwhile, the central bank wallowed in glowing praise, largely responsible for Kazakhstan's financial system being "the best in the Commonwealth of Independent States and one of the best in Europe". http://www.insightmag.com/main.cfm/include/detail/storyid/185296.html

Vietnamese GOVERNOR CAUGHT OUT
Much humour has resulted from a recent episode in Vietnam in which the governor of the central bank, Le Duc Thuy, was caught out breaking the rules of his own game. While campaigning for the country to use less cash - because it caused "inconvenience, wastefulness and risk" - it transpired that the governor himself does not in fact have a credit card of his own, or even a personal bank account. He later conceded that he had "absolutely no need" for either, and that it would be a "mere formality" were he to use either. He jokingly granted: "If I had to get my salary through an ATM, I would give my wife the card." http://perso.wanadoo.fr/patrick.guenin/cantho/vnnews/ldthuy.htm

Central Banker turns to oil
Venezuela's central bank has been going through a rocky patch recently. Not only has the national currency, the bolivar, been switched to a full float, causing central bankers something of a fright - worsened by the political instability and military unrest - but they have been robbed of their vice-president, Gaston Parra. The country's gung-ho president, ex-paratrooper Hugo Chavez, has appointed him as head of the state oil company, which has been widely interpreted as a way of bringing the company under his own control since Parra is known to be a staunch supporter of Chavez. He had been a lecturer on petroleum economics at the provincial university of Zulia, and lasted only a year in this position at the central bank. http://globalarchive.ft.com/globalarchive/article.html?id=020211001322&query #docAnchor020211001322

Creative FLAIR
The Bank of Latvia was selected at the World Money Fair in Basel, Switzerland, as the most Creative banknote issuer. It was awarded the Vreneli prize which goes to the money-issuing institution with the most imaginative designs. 40 other countries were judged for the competition. http://www.collectors.olympic.org/e/fino/fino_basel_02_e.html

Latvians KEEN FOR EURO
The Latvian Parliament has not concealed its eagerness to join the euro club with its unanimous vote in favour of the appointment of Andris Ruselis as deputy governor to the central bank. It is well known that one of Ruselis's key tasks will be to prepare the country for the introduction of the euro, and they think he is the right man for the job. Clearly his experience in the capital markets has won him respect: he had previously been president of Balta and Latva insurance companies since 1998; he had also been president of Latvijas Zemes Banka (later merged with Hansabanka). He worked at the central bank as a council member in 1990-91, graduating from the University of Latvia faculty of finance and commerce. http://ojr.usc.edu/content/ejc.cfm?request=1046#4

Czechs TOO
Good news too for the Czech National Bank, as the president of the Czech Republic reappointed the vice governor Ludek Niedermayer to the board for another six year term. This was announced on 15 February and will take effect from 27 February. This means redoubled focus on the economic effects of the nation's accession to the EU, an area in which Niedermeyer is particularly interested. Among his top priorities will also be the financial system and the profile of the central bank as an open and effective institution. http://www.pbj.cz/user/article.asp?ArticleID=141925

Pakistan CENTRAL BANK GOVERNOR SUFFERS HEART ATTACK
Ishrat Hussein, the governor of the State Bank of Pakistan, suffered a heart attack on 6 February. The deputy governor, Rashid Akhtar Chughtai, took care of his duties in the meantime. He was purportedly preparing for work when he complained of a chest pain and had to be hurried to hospital immediately. http://www.sbp.org.pk/index.cfm

Wadhwani STAYING OR GOING?
According to the Times newspaper, Sushil Wadhwani asked Gordon Brown if he might be able to keep his position on the Bank of England's Monetary Policy Committee, but Wadhwani has been quick to quash this rumour. Indeed, the odds are against him - so far, no independent member of the Monetary Policy Committee has been reappointed - though Wadhwani, as the committee's most consistent dove, may have had reason to be hopeful. http://www.thetimes.co.uk/article/0,,5-212531,00.html
 
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