Lima: President Alan Garcia will replace his finance minister, Mercedes Araoz, this week as part of a broader cabinet shuffle, three sources in the ruling party and close to the government said on Tuesday.
The move comes as Peru's economy surges at one of the world's fastest paces.
Araoz, an economist who recently got into a public row with the central bank's monetary policy director over whether she was spending too much money and contributing to inflation, will leave after about nine months on the job.
Araoz, who at times has been encouraged by members of Garcia's Apra party to run for office, is expected to be replaced by Esmail Benavides, who once led one of Peru's largest banks and previously served as agriculture minister for Garcia.
Impact
The broader cabinet changes would be carried out so that several ministers, including Prime Minister Javier Velasquez, can step down to run in regional elections in October. News of the shakeup had little impact on financial markets as no marked shift in economic policy by Garcia's centre-right government is expected.
