**Argentina’s president has ordered the removal from office of the head of its central bank, who had refused to use foreign currency reserves to pay debt.**Cristina Fernandez de Kirchner cited misconduct and dereliction of duties in a decree dismissing Martin Redrado.
But constitutional lawyers say the move may be illegal, as the central bank chief can only be removed by Congress.
The president had asked Mr Redrado to resign after he rejected her order to transfer $6.6bn to a government fund.
Argentina has $13bn of international debt that matures this year, and a hole in its budget of between $2bn and $7bn.
Recess
In an emergency decree, Mrs Fernandez de Kirchner said the central bank governor had “failed to fulfil the duties of a public servant” and urged prosecutors to seek unspecified “legal measures” against him.
“The decision was made because the central bank must keep functioning”
Cristina Fernandez de Kirchner
President of Argentina
Later, she named Mr Redrado’s deputy, Miguel Pesce, has his interim successor. Mr Pesce had supported the government’s move to use reserves to cover debt.
“The decision was made because the central bank must keep functioning,” she said.
However, opposition politicians and constitutional experts said the president did not have the legal authority to dismiss Mr Redrado.
Under the bank’s charter, the government can dismiss a member of its board, but must have a recommendation from a special congressional committee.
Economy Minister Amado Boudou said that since it was ultimately the president’s decision and Congress was in recess, the direct dismissal was legal.
The BBC’s Candace Piette in Buenos Aires says economic analysts believe the attempt to sack Mr Redrado shows how desperate Argentina’s government is to get funds to pay debt - a bad sign for a country seeking more foreign investors.