Ollanta Humala sworn in as Peru president

Lima,. This year's military parade marking the 190th independence anniversary of Peru opened after the arrival of recently sworn-in President Ollanta Humala at Brasil Avenue in the capital Lima.

Humala, who is wearing the presidential sash, received the military honors according to his high investiture and then reviewed the troops accompanied by Defense Minister Daniel Mora upon his arrival at the main stand.

The ceremony began with the hoisting of the Peruvian flag and all attendees sang the national anthem immediately after.

The event, which is held every year on July 29, is attended by ministers, senior political, military and religious authorities, and representatives of member countries of the Union of South American Nations (Unasur), as well as hundreds of people.

The parade pays tribute to Peruvian Armed Forces for its contribution to the country, and at the same time, is an opportunity to inspire patriotism and love of country.

His decision to keep Julio Velarde as the president of the Central Bank and name Luís Miguel Castillo — a respected technocrat and the former second-in-command at the Ministry of Finance — to the top economy job, won applause from the private sector.

“He has surprised us, not only with his statements — that point to sound economic policies — but by naming people to his economic cabinet that are believers in the free market,” said César Peñaranda, the director of the Institute for Economy and Business Development.

But there will certainly be fights ahead, as Humala has vowed to raise the minimum wage, expand the country’s pension program and raise taxes on one of the nation’s primary economic engines: mining.

During the contentious campaign, Humala’s opponents demonized many of his proposals, accusing him of being willing to hock the nation’s wealth to emulate Venezuelan President Hugo Chávez’s social programs.

But any fears that Humala might move the country sharply left should be assuaged by his actions since he won the June 5 election, said Erasto Almeida, an analyst with the New York-based Eurasia Group.

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Peru’s President-elect Ollanta Humala will name Miguel Castilla to head the finance ministry as part of a Cabinet that may ease concerns his policies will stunt the Andean nation’s economic growth and fiscal stability.

The appointment was announced by Humala’s political party, Gana Peru, on its Twitter account today. Humala will also name Salomon Lerner as Cabinet chief, the party said.

Castilla, 42, stepped down as deputy finance minister to departing President Alan Garcia last weekend. Lerner is a former deputy trade minister and businessman who served as an adviser during the presidential campaign.

Humala, a former army rebel who takes office July 28, is seeking to reassure investors concerned that his plans to raise mining royalties and enlarge state control may erode economic growth fueled by private investment under Garcia. Humala this week tapped central bank President Julio Velarde, who oversaw a tripling of international reserves, to remain in his post for another five-year term.

Peru’s $153 billion economy expande

Luis Miguel Castilla, who until Friday was deputy finance minister, was chosen to be Humala's finance minister. Castilla is an orthodox economist and was chosen over the academic economists Humala relied on during the campaign, many of whom favor more government intervention in the economy and were frowned on by the business community. Castilla has a doctorate from Johns Hopkins University in the United States and is a former World Bank official. He is closely associated with the free-market growth boom of recent years, which relied heavily on foreign investment and which Humala has criticized for ignoring the fight on poverty.

The widely respected Julio Velarde was Humala's surprise pick to stay on as central bank president. By announcing he intended to reappoint Velarde, Humala won praise from investors and local financial markets rallied. Velarde, 58, is credited with helping Peru weather the global economic crisis in 2009 by cutting interest rates to an all-time low, thereby avoiding deflation. The Brown University PhD also helped slay hyperinflation as a member of the bank's board of directors from 1990-1992, when the country was near financial ruin. Humala needs to appoint three directors to the central bank's board and Congress will appoint three of its own choosing.