Lisbon, July 24, 2025 (Lusa) - The government announced on Thursday that it had chosen economist Álvaro Santos Pereira as governor of the Bank of Portugal (BdP), succeeding Mário Centeno.
Today's cabinet meeting announced the decision at the end of the meeting at a press conference, with Portugal’s minister of parliamentary affairs, António Leitão Amaro, justifying the change as a “better choice” than reappointing the former finance minister.
Álvaro Santos Pereira was Minister of Economy and Employment from 2011 to 2013 in the government of Pedro Passos Coelho (PSD/CDS-PP) and is currently chief economist at the Organisation for Economic Co-operation and Development (OECD).
"The cabnet decided, at the proposal of the Minister of Finance, that [the new governor] will be Professor Álvaro Santos Pereira," announced Leitão Amaro, justifying the choice with the economist’s “highly recognised” CV.
“He is currently the chief economist of one of the world’s leading international economic organisations. He has a deep understanding of the Portuguese economy, a deep understanding of the international economy and knowledge of the financial system,” he said.
When reporters asked about Mário Centeno’s appointment, the Minister of Cabinet Affairs said the government had decided to choose someone it considered better than Centeno to perform the role of governor.
"We chose someone who we believe is best for the job, naturally. We believe that Professor Álvaro Santos Pereira better serves the objectives of a central bank, which is the supervisory authority and has research and statistical responsibilities, which is part of the Eurosystem, the European Supervisory Mechanism, and the characteristics that led us to make this choice are the various ones I mentioned. It is the best choice because he is independent: his background lies outside both the bank and any government,” he explained.
When confronted with the fact that Santos Pereira was a minister in Passos Coelho’s government, Leitão Amaro explained that the economist is taking up the post after a period outside government. In contrast, Mário Centeno transitioned directly from serving as finance minister to the governorship within the same administration.
At the OECD, Álvaro Santos Pereira began as Director of National Studies in the Economics Department, a position he assumed in 2014 after leaving the Portuguese government. In 2024, the OECD appointed him chief economist, replacing Clare Lombardelli.
A Portuguese and Canadian national, he was a professor of economic development and economic policy at Simon Fraser University and the University of British Columbia in Canada, as well as a professor at the University of York in the United Kingdom.
The Organic Law of the Bank of Portugal states that the cabinet appoints the governor and the other members of the Board of Directors by resolution, at the proposal of the member of the government responsible for finance, and after a reasoned opinion from the competent parliamentary committee. They hold office for a term of five years, renewable once for the same period.
Mário Centeno’s term ended on 19 July this year, but as Luís Montenegro’s government announced his successor after that date, the governor continues to serve in office.
Leitão Amaro thanked Mário Centeno for “the performance of his duties” and said that the current governor “is today and will continue to be [governor] in the coming days until someone replaces him”.
The minister chose, however, not to comment on Centeno’s current term. “I will reserve any comments or assessments here on Mário Centeno’s performance as governor, except to thank him for his service [to the country],” he said.
PCT/ADB // ADB.
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