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Argentine President Cristina Fernandez de Kirchner tried to fire central bank chief Martin Redrado after he failed to back a plan to tap $6.6 billion in reserves to pay debt, setting off a constitutional clash with Congress.
Redrado, who almost tripled reserves to $48 billion since taking office in September 2004, told opposition politicians he won’t leave his post, Senator Gerardo Morales said. The power to dismiss the central bank head rests with Congress, Morales said. Fernandez’s proposed replacement, former central bank President Mario Blejer, declined the offer, El Cronista reported.
Fernandez targeted Redrado as the government seeks to return to international markets for the first time since its 2001 default on $95 billion of debt by settling claims with creditors. Argentine bonds fell the most since Nov. 30, the peso weakened and the Merval stock index lost 1.6 percent.
Wikipedia entry for
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The Argentine economic crisis was a financial situation that affected Argentina's economy during the late 1990s and early 2000s. Macroeconomically speaking, the critical period started with the decrease of real GDP in 1999 and ended in 2002 with the return to GDP growth, but the origins of the collapse of Argentina's economy, and their effects on the population, can be found in action before. As of 2005, arguably the crisis was over, though many challenges remain for the country.
