Tag: argentina

Spot the difference: Argentinian reserve plan, II

March 1, 2010 5:25 pm by Emma Saunders

Cristina Fernandez has told Congress that she’s scrapped a presidential decree to tap $6.6bn in foreign currency reserves to help pay the country’s debt. The plan had been blocked by the country’s courts, and was the reason central bank chief Martin Redrado was ousted.

But, hang on: Ms Fernandez has signed a new decree to allow $4bn reserves to pay multilateral lenders, eg the World Bank or IMF. $2.2bn of reserves had already been earmarked for the purpose. So we’re talking about $6.2bn instead of $6.6bn, the money would still be used to pay debt, but the creditors would be different.

What will the opposition-controlled Congress make of this?

Argentina: cenbank-govt collaboration explicit

February 18, 2010 7:02 pm by Emma Saunders

Argentina’s expected co-operation with the government has been confirmed explicitly by the central bank president and the economy ministry. Bank president Mercedes Marco del Pont told reporters that the Banco Central will co-ordinate its policies with the country’s Economy Ministry, while economy minister Amado Boudou announced the formation of a new economic council, which will group officials from both institutions.

Focus at the central bank will be on company output rather than inflation, said Ms Marco del Pont: “We want to focus on price stability but from a different, non-orthodox view, from the supply side.” Annual inflation is running at 32.1 per cent, according to a report by Graciela Bevacqua, the former head of the consumer price department at the national statistics institute.

Argentina also expects to receive a response from the US Securities and Exchange commission this week on the filing related to its planned debt swap, said Mr Boudou. So, today or tomorrow, presumably (Bloomberg & Reuters).

Tags: argentina, central bank independence, inflation, Latin America, role of central bank
Posted in Bank of Argentina | Permalink

Argentine peso falls to record low

February 16, 2010 7:55 pm by Emma Saunders

The peso hit an all-time low against the dollar during trading today, apparently because of dollar purchases. The current rate is lower even that that which followed the Argentinian debt default and devaluation.

Tags: argentina, currency, Latin America, peso
Posted in Bank of Argentina | Permalink

The lengthy Argentine central bank saga

February 4, 2010 10:05 pm by Simone Baribeau

I called the end too soon. The Argentine central bank fiasco has clearly outlived Martín Redrado stepping aside. In an unexpected twist, a presidential ally was chosen to head the country’s central bank.

From tomorrow’s paper…

Argentina’s new central bank head on Thursday promised to maintain current monetary policy as she sought to calm market fears that her appointment would damage the bank’s independence.

Mercedes Marcó del Pont has close links to the government and was appointed this week by Cristina Fernández, Argentina’s president, after a bitter political battle to remove the former chief for failing to hand over reserves to pay off debt.

“I want to transmit calm,” Ms Marcó del Pont said. “We’re planning policies that maintain current monetary and exchange rate policies, and that of the administered exchange rate.”

Continue reading:

Tags: argentina, Latin America, Martín Redrado, politics
Posted in Bank of Argentina, Bank of Mexico, Banxico | Permalink

Argentine president picks ally to head bank

February 4, 2010 9:47 am by Emma Saunders

In a move that has surprised markets, Mercedes Marcó del Pont has been chosen as the new Argentinian central bank chief with immediate effect. Markets had expected the interim governor and former chief, Mario Blejer, to remain in office until September, when ousted chief Martin Redrado’s term was due to end.

The appointment heightens fears for central bank independence in the country. “Ms Marcó del Pont is seen as very close to the government, which means that the central bank will continue to be virtually subordinated, in terms of policy directives, to the government,” said Alberto Ramos, an economist at Goldman Sachs. Ms Marcó del Pont previously headed the state-run Banco de la Nación. (More from the paper)

Tags: argentina, central bank independence, Latin America
Posted in Bank of Argentina | Permalink

Argentine saga outlives Redrado

February 1, 2010 3:48 pm by Emma Saunders

Central bank governor Martin Redrado has gone, but the story continues. It transpires the Argentine President may seek changes to the central bank’s charter to allow the government to tap the institution’s reserves, an Argentine newspaper has said.

Cristina Fernandez de Kirchner and her husband, lawmaker Nestor Kirchner, want to be able to use the reserves to help create jobs or finance infrastructure projects, said La Nacion, without stating its source. Apparently the proposal may be sent to Congress next month.

Tags: argentina, central bank independence, Latin America
Posted in Bank of Argentina | Permalink

Argentine central bank chief saga ends

January 30, 2010 1:19 am by Simone Baribeau

It’s over.

After weeks of acrimonious fighting, Martín Redrado, the central bank president who President Cristina Fernández has been attempting to fire , accepted defeat.

Some background for those who haven’t been following the saga:

The dispute started last month, when Mr Redrado refused to hand over $6.5bn to help pay off government debt after an emergency decree from Ms Fernández. Mr Redrado argued that the move could leave the central bank open to suits from bondholders who are still trying to get paid back after Argentina’s $100bn default.

So, earlier this month, Ms Fernandez released another emergency decree: this time sacking Mr Redrado.

Problem was, Mr Redrado won’t comply with that decree either.

Continue reading: “Argentine central bank chief saga ends”

Tags: argentina, Latin America, Martín Redrado
Posted in Bank of Argentina | Permalink

Duelling Argentine central bankers

January 25, 2010 9:02 pm by FT writers

By Jude Webber, Argentina correspondent

Will the real president of Argentina’s central bank please step forward.

Two men were on Monday claiming the title. One was Martín Redrado, a former investment banker who has been at the helm for the past five years and was the institution’s second longest-serving president until he fell foul of Cristina Fernández, Argentine president, by failing to hand over some of the central bank’s reserves to pay off debt.

Now dismissed by Ms Fernández as a “squatter”, Mr Redrado tried to get into his office on Sunday but was turned away by police.

The other protagonist is Miguel Angel Pesce, formerly Mr Redrado’s deputy, whom the government installed as interim president last Friday, his second hasty promotion in three weeks. Mr Pesce was on Monday at work at the central bank and the government said Mr Redrado’s career there was finished. Continue reading.

Tags: argentina, Latin America, Martín Redrado, Miguel Angel Pesce
Posted in Bank of Argentina | Permalink

Argentina: Redrado ‘no longer in charge’

January 25, 2010 5:11 pm by Emma Saunders

In the ongoing battle between the central bank and the government, it appears the government has taken the advantage. Bank president Martin Redrado, 48, was prevented from entering the central bank last night and hasn’t appeared at the institution today. In his absence, vice president Miguel Pesce is in charge.

Congress will decide who gets the job, and also whether central bank reserves may be used to pay for debt. If another bank president is found but funds are not allowed to be transferred, the Fernandez camp will have gained little from the furore: Mr Redrado’s refusal to transfer the funds without Congressional approval is the reason his resignation was called for.

Tags: argentina, Latin America
Posted in Bank of Argentina | Permalink

Court rules Congress to decide Redrado fate

January 22, 2010 6:34 pm by Emma Saunders

The Argentinian justice system has ruled Congress should decide whether central bank governor Martin Redrado will keep his job. It was the courts that reinstated Mr Redrado following his presidential sacking. They also found in Mr Redrado’s favour, preventing the central bank from transferring a disputed $6.6bn foreign reserves, as requested by the President. The courts maintained that injunction today.

Tags: argentina, central bank reserves, Latin America
Posted in Bank of Argentina | Permalink