The board is reportedly split between Redrado loyalists and

Possible outcomes in Argentine cenbank dispute

canada goose outlet store quebec Jan 6 (Reuters) Argentina President Cristina Fernandez tried to oust on Wednesday the country central bank chief over his reluctance to use billions of dollars in foreign currency reserves to make debt payments this year. canada goose outlet store quebec

Martin Redrado, a Harvard educated economist and former trade minister, is resisting government calls for him to step down as central bank president.

canada goose outlet phone number The standoff has generated uncertainty and raised questions about Argentina plans to Canada Goose Jackets return to global credit markets this year for the first time after a 2001 debt default. canada goose outlet phone number

canada goose outlet in uk canada goose outlet Here are possible scenarios on buy canada goose jacket cheap how canada goose factory sale the conflict may play out: canada goose outlet in uk

REDRADO FUTURE DECIDED IN CONGRESS Central bank officials say Redrado has no plans to resign and wants Congress to decide his fate.

The Central Bank charter says the head Canada Goose sale of the bank can be removed by the executive branch but requires input from a congressional committee. That committee would likely be headed by Vice President Julio Cobos, who has split with President Fernandez but remains in office and has become a key opposition leader.

Throwing the decision uk canada goose to Congress, where opposition leaders have already come out in support of Redrado, would set up a potential political canada goose clearance showdown. Fernandez lost canada goose uk black friday her congressional majority in midterm elections last year, but her bloc remains the leading force in both houses of Congress.

Some analysts say the most likely outcome is that prolonged wrangling in Congress canadian goose jacket could allow Redrado to hang on until September, when his term ends.

RECENTLY RISING BOND PRICES COULD BE HELD BACK canada goose coats on sale The Central Bank controversy comes as Argentina is working to settle with holders of $20 billion in canada goose black friday sale defaulted bonds and clear the way for a return to international credit markets this year.

canada goose outlet store toronto The government plans to launch the swap later this month and signs that it is moving to resolve the issue have led to a huge rally in Argentine bond prices in recent months. canada goose outlet store toronto

canada goose parka uk The turmoil between the government and the central bank could restrain any boost bonds would be expected to get in the coming weeks as the swap offer is announced. That, in turn, canada goose uk outlet means the government might not get as low an interest rate as it hopes for on a major global bond issue this year. canada goose parka uk

canada goose outlet mall Economy Minister Amado Boudou cheap canada goose uk said on Wednesday the planned swap is a process and vowed to move ahead with it. canada goose outlet mall

REDRADO CHOOSES TO STEP DOWN On Thursday the Central Bank nine member board of directors, including Redrado, is scheduled to meet. The board is reportedly split between Redrado loyalists and members who are closer to President Fernandez.

canada goose outlet germany If he doesn get backing from his board, Redrado could canada goose uk shop decide to step down, clearing the way for Fernandez to name a new central banker. canada goose outlet germany

Officials said on Wednesday the government was looking to designate Mario Blejer, who headed the bank in 2002. He has turned down the offer, according to a newspaper report, but he could reconsider once Redrado future becomes clear.

canada goose outlet parka A Blejer appointment would likely be welcomed by markets. canada goose outlet parka

PROLONGED TURMOIL If the turmoil drags on, it would add to already rising tensions between the branches of power. The Supreme Court has asked the government to explain its decision to tap foreign currency reserves to make debt payments as part of a lawsuit filed before the high court.

Opposition leaders in Congress sought a court injunction to block the plan, claiming it threatens the central bank autonomy.

canada goose outlet orlando If Redrado stays on and continues to resist handing over foreign reserves to pay debt, the government could be forced to use its buy canada goose jacket regular balance sheet to meet steeply rising obligations this year. canada goose outlet orlando

canada goose outlet in canada A protracted fight could also Canada Goose online complicate the government cheap Canada Goose ability to find a qualified successor to Redrado. (Editing by Kenneth Barry) canada goose outlet in canada.

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