The latest from Buenos Aires: The government of Cristina Fernandez is at an ugly impasse with the Central Bank’s president, Martin Redrado. Long story short: the president demanded Redrado resign because he declined to allow central bank reserves to be used to pay off government debt coming due this year. Even as Redrado dug in his heels, Fernandez’s Economy Minister reportedly offered his job to a former Central Bank boss, Mario Blejer. Of course, Blejer turned it down upon learning Redrado was refusing to bow to political pressure. Markets reacted blithely to a report in the Cronista newspaper that Blejer had been offered the Central Bank job, mainly because he’s a respected and known quantity on the international stage whose appointment might usher in some much-needed stability. But anyone with a stake in Argentina should actually feel rattled, not reassured, by this turn of events. It’s a sign of governmental, and governance, rot.
2 Comments to Argentina’s Governance Scandal
[...] allegedly poor conduct and dereliction of duty. If you’re new to the topic, have a look at my blog on this yesterday. Fernandez’s administration said Deputy Governor Miguel Angel Pesce will be [...]
January 6, 2010
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