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.
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