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UPDATE 1-Mexico names Diaz de Leon to replace Carstens as central bank chief

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MEXICO CITY, Nov 28 (Reuters) - Mexico's president on Tuesday named former finance official Alejandro Diaz de Leon to take over as the head of the central bank to replace outgoing chief Agustin Carstens.

President Enrique Pena Nieto's office said in a statement that Diaz de Leon had been designated to see out the remainder of Carstens' second term, from Dec. 1, 2017 to Dec. 31, 2021.

Diaz de Leon is currently a member of the five-strong board of the bank and was one of the favorites to replace Carstens, who is stepping down on Nov. 30 to take charge of the Bank for International Settlements (BIS) in Switzerland.

Carstens, one of the world's most respected central bankers from an emerging market economy, originally planned to leave early this year but agreed to stay on through November after the peso sank to a record low on concerns U.S. President Donald Trump could end a free trade deal with Mexico.

Diaz de Leon, 47, was ratified by the Senate last December to replace inflation hawk Manuel Sanchez on the central bank board and his nomination to now lead the bank will not require another vote by lawmakers.

Following Carstens' exit, Pena Nieto will need to name another, new fifth member of the board.

Before joining the central bank board, Diaz de Leon had run the government's export bank Bancomext from 2015 until late last year, and before that served as the head of the finance ministry's public debt office.

He was a key figure in selling Pena Nieto's economic reform agenda in 2013 and 2014 to global investors. (Reporting by Frank Jack Daniel and Michael O'Boyle; Editing by Tom Brown)