Can ex-central bank chief pull Brazil out of recession?

Rio De Janeiro

LESS than a year ago, Brazil's Michel Temer compared then-finance minister Joaquim Levy to Jesus Christ. Now, Mr Temer is acting president and his newly appointed finance minister is already being hailed as the economy's potential saviour. Investors may want to be wary.

Those who believe that former central bank chief Henrique Meirelles is well positioned to help pull Brazil out of its worst recession in a century need only look back a year to realise the perils of putting too much trust in any one man. Mr Levy took office in January 2015 amid confidence that he could fix Brazil's economy. That did not work out, and the country's US dollar-denominated bonds lost 17 per cent during his 11-month tenure. Since Brazil's lower house voted in favour of ousting Dilma Rousseff, its bonds have returned 1.1 per cent, beating the emerging-market average.