New Finance Minister Tapped following Echeverry Surprise

Colombian president Juan Manuel Santos has named Mauricio Cardenas as the country’s new finance minister after the resignation of Juan Carlos Echeverry. The well-respected Echeverry was a surprise late inclusion to Santos’ cabinet reshuffling last week. “This announcement came as a surprise as the only movements expected by local political analysts were related to the ministries of agriculture, environment, transportation and interior. Although this announcement took us by surprise, we believe Mr. Cardenas is a suitable and adequate candidate for this job,” Citi says in a report. The shop notes that the change does not affect the positive trend and results displayed in the fiscal front over the last years, which include a series of key reforms passed on Echeverry’s watch. Lately, he had started to oppose directions in monetary policy, Itau says, calling for greater intervention in the foreign exchange market. In the last two weeks, the finance ministry itself started to buy dollars, in parallel to the central bank’s $20m-a-day program. Cardenas had been the energy and mining minister, and has also served as transport minister. “His arrival suggests an easing of the strife between the finance ministry and the central bank, putting the latter again at the helm of exchange rate policy,” Itau says.