President vs. Central Bank President in Argentina
Bloomberg reports Argentine President Kirchner fired Central Bank President Redrado and replaced him with Mario Blejer. Wait, she can do that? Maybe, maybe not.
Other media outlets say Kirchner "asked" the Central Bank president to resign. Usually, a president requesting a resignation is as good as firing, but in most countries the Central Bank chief is an independent authority. According to local media, Redrado, whose term goes until September, is going to resist Kirchner's request to leave, setting up the beginning of what could be a fascinating institutional battle.
Kirchner had previously ordered Redrado to hand over $6.5 billion in foreign reserves for debt payments. The Central Banker refused in his capacity as an independent agency. The government says the Bank can't refuse the presidential order on transferring the money. Opposition officials are backing up Redrado.
So, it appears the Argentine president has a vice president who is a member of the opposition party and a Central Bank president who she can't fire and who won't make the monetary moves she wants.
Update: ...and a replacement for Central Bank President who doesn't want the job. Blejer indicates he won't take the job Kirchner has appointed him to do.
Other media outlets say Kirchner "asked" the Central Bank president to resign. Usually, a president requesting a resignation is as good as firing, but in most countries the Central Bank chief is an independent authority. According to local media, Redrado, whose term goes until September, is going to resist Kirchner's request to leave, setting up the beginning of what could be a fascinating institutional battle.
Kirchner had previously ordered Redrado to hand over $6.5 billion in foreign reserves for debt payments. The Central Banker refused in his capacity as an independent agency. The government says the Bank can't refuse the presidential order on transferring the money. Opposition officials are backing up Redrado.
So, it appears the Argentine president has a vice president who is a member of the opposition party and a Central Bank president who she can't fire and who won't make the monetary moves she wants.
Update: ...and a replacement for Central Bank President who doesn't want the job. Blejer indicates he won't take the job Kirchner has appointed him to do.
Labels: argentina, democracy, economics, latinamerica |
