The Only Voice Of Reason In Argentina's Government Just Quit
Fabrega was appointed by President Cristina Fernandez de Kirchner at the end of 2013, but since then the two have been at odds a bit. The last straw may have been a speech the President gave in which she blamed Fabrega for issues with capital flight and a rising dollar.
"You blame me for the flight of capital and the rising dollar, that's fine," said Fernandez speaking to Fabrega in the front row of her public speech. "I feel for the dollar losses and not another one should leave the country. Besides that, you continue to have a problem with the economy that I don't have to solve. Just be sure another dollar does not leave the country."Fabrega was not liked by the country's Economy Minister, Axel Kiciloff. Fabrega was in favor of negotiating with a group of hedge fund holdout creditors, whose victory in a lawsuit for over $1.3 billion, and Argentina's refusal to pay them, sent the country into default.
Securities regulator Alejandro Vanoli will take Fabrega's place as head of the Central Bank.
He'll have his work cut out for him. The country is battling rising inflation, capital flight and dwindling dollar reserves. Morgan Stanley estimates that if conditions remain as they are, the Central Bank could have as little as $10 billion in cash by this time next year.
Low commodities prices aren't helping the country's balance of payments either.
Good luck Vanoli.