Loading ...“Not A Good Sign” Argentine Stocks, Bonds Crash As Central Bank Chief Resigns
Tyler Durden’s pictureSubmitted by Tyler Durden on 10/01/2014 19:15 -0400
Just a day after Argentine President Cristina Kirchner, in a televised speech, accused central bank employees of helping local bankers to speculate against the Argentine peso in hopes of forcing the government to devalue the currency, Juan Carlos Fabrega – the head of Argentina’s Central Bank – has quit. As WSJ reports, unable to borrow abroad due to a legal dispute with creditors, Mrs. Kirchner has relied on money printing to cover spending deficits at the expense of inflation that is thought to be around 40%; and it appears the sanity of Mr. Fabrega was too much to bear for Kirchner (and Kiciloff – who had reportedly clashed with the Central Banker also). The reaction – not good – the stock index collapsed over 8%, bond yields spiked and the black-market peso dumped to record lows at 15.65 to the USD (drastically worse than the 8.51 official peso rate).