The Central Bank headquarters are in Buenos Aires (photo Wikipedia)
The president of Argentina’s Central Bank, Juan Carlos Fábrega, resigned yesterday after almost a year in the post. He will be replaced by Alejandro Vanoli, head of the National Securities Commission.
The news came a day after President Cristina Fernández de Kirchner criticised Fábrega indirectly during an address on Tuesday, when she accused a group of banks of undertaking irregular “manoeuvres” to buy dollars and leaking insider information, before criticising authorities for undertaking sufficient controls.
Insiders say that Fábrega, who has previously criticised government policy, felt he had no other choice than to offer his resignation in light of the speech.
Markets reacted badly to the news, with shares falling 8.2%.
Vanoli, who previously held positions in the Economy Ministry and central bank, including adviser to the bank’s board of directors, is said to be closer to the government’s line. He takes the helm at a difficult time, in the midst of the government’s default on its debt payment due to its on-going battle with the holdouts, dubbed ‘vulture funds’.
As head of the central bank, he will be responsible for monetary policy as well as policing the financial system and currency market. Inflation, currently at around 30%, exchange-rate policy, and declining reserves are the top challenges he is likely to face during his tenure.
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