The Portuguese government has announced the nomination of Alvaro Santos Pereira as the next governor of the central bank, succeeding Mario Centeno, whose term ended in July. Pereira, chief economist at the OECD, must undergo parliamentary questioning before his appointment. Centeno's tenure faced criticism for perceived lack of independence after transitioning from finance minister to central bank governor.

LISBON (Reuters) - The Portuguese government has nominated Alvaro Santos Pereira, the current chief economist at the Organisation for Economic Cooperation and Development (OECD), to become the next governor of the central bank. His nomination comes following the end of Mario Centeno’s term, which officially concluded on July 19. 

The announcement was made by Cabinet Minister Antonio Leitao Amaro during a weekly cabinet meeting. 

The central bank governor's role is critical and comes with a five-year term, with the possibility of reappointment. Prior to officially taking office, Pereira will need to face questioning from a parliamentary committee; however, this committee holds no power to veto his nomination. It's common in Portugal for heads of regulatory bodies to continue in their positions for months after their official terms have ended, a scenario that occurred with Centeno as well, who had expressed his willingness to remain in the role. 

This nomination highlights the importance of leadership within Portugal's financial landscape, especially as economic conditions evolve. The appointment is now set to undergo the next steps in the approval process, continuing to attract attention within both political and economic spheres.

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