BRASILIASAO PAULO, Reuters Brazil39;s President Luiz Inacio Lula da Silva has picked central bank monetary policy director Gabriel Galipolo to be the institution39;s next governor, replacing Roberto Campos Neto whose term ends in December, Finance Minister Fernando Haddad said on Wednesday.

It is a great honor, a significant responsibility, and I am very pleased, Galipolo told journalists in Brasilia alongside Haddad.

His naming had been widely expected.

Galipolo39;s appointment must be confirmed by the Senate39;s economic affairs committee before going to the full Senate for approval for him to take the post in January.

Haddad said the Senate will know when the best moment to hold Galipolo39;s hearing will be.

A source with knowledge of the matter, who spoke anonymously, said the Senate hearing is expected to occur on Sept. 10 before the Upper House Economic Affairs Committee.

This would allow Galipolo to receive senators39; greenlight before the next monetary policy meeting on Sept. 1718, aligning with the government39;s strategy to increase the significance of his remarks as Campos Neto39;s departure approaches.

In a press statement, current governor Campos Neto congratulated his successor and stated, The transition will be carried out as smoothly as possible, preserving the institution39;s mission.

Following the announcement, the Brazilian real weakened further against the U.S. dollar, while interest rate futures increased.

According to Haddad, the…