The government of Argentine President Cristina Fernández de Kirchner asked Central Bank President Martín Redrado to leave his post on Wednesday after he refused her request to transfer $6.6 billion in Central Bank reserves to help pay government debts. Argentine government debts are expected to rise to $13 billion this year.
President Kirchner appointed former Central Bank President Mario Blejer, to the post. But Blejer has rejected the appointment and Redrado has refused to step down. According to the Central Bank’s charter, Redrado can only be dismissed for misconduct or failure to carry out his duties after the President has consulted with a congressional committee chaired by the Senate President (Vice President Julio Cobos). In the past, Cobos has disagreed with some of the government’s economic policies.
Redrado, who says only Congress has the authority to fire him, says he plans to stay until September, when his term ends. The Merval stock index had fallen 2 percent by midday.