UPDATE 3-Argentina central bank chief quits, raising policy uncertainties

miércoles 1 de octubre de 2014 21:11 GYT
 

(Adds context, quote from president's speech)

By Jorge Otaola and Nicolás Misculin

BUENOS AIRES Oct 1 (Reuters) - Argentina's central bank chief resigned on Wednesday after a long tussle with the economy minister and was replaced with a regulator seen as sympathetic to the interventionist stance of a government fighting one of the world's highest inflation rates.

Juan Carlos Fabrega had argued for tighter anti-inflation policies and opposed the government's heavy fiscal spending, but ran up against the powerful economy minister, Axel Kicillof, who pushed to boost growth in the stagnating economy.

Argentine debt prices fell on the news Fabrega had stepped down.

Alejandro Vanoli, head of Argentina's markets regulator, will take over as the central bank chief, a spokesman for leftist President Cristina Fernandez said.

Fernandez has scaled up her interventionist policies in Latin America's No. 3 economy since it defaulted on its foreign debt in July, intensifying capital flight and piling pressure on shrinking foreign reserves and the peso currency.

In a fiery speech on Tuesday, Fernandez publicly suggested that the central bank had failed to prevent commercial banks from driving the peso lower.

"Fabrega handed in his resignation this afternoon in a way that was impossible to decline," a source at the central bank told Reuters.   Continuación...