Bank of France governor Francois Villeroy de Galhau, who is also a member of the European Central Bank’s rate-setting Governing Council, will step down in June, the bank said Monday.
His departure was a surprise to financial markets, as it will come 18 months before his term was set to end in late 2027.
“My nearly 11 years at the head of the Bank of France and in service of the euro are and will remain the honour of my public career,” Villeroy de Galhau said in a statement.
In a letter to bank employees seen by AFP, Villeroy de Galhau said that his decision was made “with complete personal independence” and that he had informed French President Emmanuel Macron as well as ECB President Christine Lagarde a few days ago.
The 66-year-old said he would be taking up the presidency of a Paris-based children’s charity, the Fondation Apprentis d’Auteuil.
“I can understand how this decision can come as a surprise for you,” he said, adding that “Early June is sufficient time to calmly organise my successor.”
Villeroy de Galhau, a former BNP Paribas executive, was named governor of the Bank of France in 2015 and renewed for a six-year term in 2021.
As Bank of France governor, he oversaw interest rates on state-regulated financial products like the hugely popular Livret A savings accounts and accounts for low-income households, as well as efforts to limit excessive personal debt.
He also helped shape monetary policy at the ECB with the other central bank chiefs of the single currency zone, who sit on the Governing Council and work hand in hand with the bank’s Executive Board.
“The Governing Council has benefited enormously from the realism combined with strong European convictions and vision that he always brings to the table,” Lagarde, also from France, said in a statement.
“His friendly, wide-ranging, team-oriented, good-humoured and consistently well-articulated contributions greatly enriched our discussions.”
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