Mr Makhlouf was initially appointed to the post on September 1, 2019, so his seven-year term of office was due to expire at the end of August.
Finance Minister Simon Harris had been told by his officials that it was important to take an early decision on the role prior to Ireland taking over the presidency of the EU this summer.
Had the Government instead decided to choose someone new, an international selection process could have taken several months.
Nevertheless the reappointment has come as a surprise, since previous governors of the Central Bank have only served one term.
Philip Lane left the role in 2019, after four years, to take up a position as chief economist in the ECB. Before him, Patrick Honohan served one term from 2009, and he succeeded John Hurley who served from 2002 to 2009, with his term extended by six months to allow a reorganisation of the financial regulation system. Maurice O’Connell did one term between 1994 and 2002.
As governor, Mr Makhlouf (66) is a member of the governing council of the European Central Bank (ECB), and is Ireland’s alternate governor at the International Monetary Fund.
Making the announcement, Mr Harris said: “Mr Makhlouf is eminently qualified to perform the role of Governor of the Central Bank and the Government was pleased to support his nomination for reappointment.
“During his first term, Mr Makhlouf introduced reforms and enhancements that have strengthened the Central Bank and will continue to positively impact its performance. I wish him every success as he continues to lead the organisation in the years ahead.”
Mr Makhlouf’s second seven-year term will commence on September 1, once his nomination is approved by President Catherine Connolly.
His salary is about to reach €348,000 a year, after the Central Bank Commission’s remuneration committee decided last December to approve a 2pc pay rise for all senior executives at the bank. The first increment came into effect on February 1, and the second is due in June.
While he will earn €348,000, three deputy governors – Mary-Elizabeth McMunn, Colm Kincaid and Vasileios Madouros – will move up to salaries of €303,000 a year.
At the time of Mr Makhlouf’s appointment in 2019, it was reported that the ECB had raised concerns with the Government about his nomination, on the basis that he was a British national and not an economist. However, this was at a time of political tumult caused by Brexit, when there was a heightened sense of European nationalism in relation to leading posts.
Before joining the Central Bank of Ireland, Mr Makhlouf was secretary to the New Zealand Treasury and its chief executive from 2011 to 2019.
He was the New Zealand Government’s chief economic, financial and regulatory adviser, providing advice on its economic and fiscal strategy and on achieving value for money from investments.
Mr Makhlouf also worked in the British civil service, including being responsible for the UK’s Government Banking Service. He is a former chair of the world’s main tax rule-making body – the Committee on Fiscal Affairs – at the OECD in Paris.
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