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Climbing volatility of the US dollar in Argentina forces resignation of central bank president

Thursday, October 2nd 2014 - 07:15 UTC
Full article 15 comments

Argentine Central Bank President Juan Carlos Fabrega resigned Wednesday after an alleged disagreement with President Cristina Fernandez over how to keep a lid on the black market exchange rate ('blue' dollar) that hit a record 16 pesos per dollar last week. Read full article

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  • Anglotino

    Amazing that CFK is blaming everyone except the actual person causing the problems.... HERSELF.

    Oct 02nd, 2014 - 08:25 am - Link - Report abuse 0
  • chronic

    Wonder where Juan Carlo Fabulous will seek asylum. Guess it depends on where he pre-staged the dollars.

    And the #1 choice is: South of France! ding! ding! ding!

    Oct 02nd, 2014 - 09:44 am - Link - Report abuse 0
  • Klingon

    At least give him credit for taking a stand against the nutty old haggis.

    Oct 02nd, 2014 - 10:54 am - Link - Report abuse 0
  • Wallace

    Either CFK and Axel are remarkably brilliant and have come up with a brand new economic model that no one else in the world understands but will launch Argentina into 100 years of prosperity; or Argentina will crash and burn spectacularly.

    I know which one I would be betting on.

    Oct 02nd, 2014 - 12:06 pm - Link - Report abuse 0
  • 313toBioBio

    My bet is they destroyed Brazil and even Chile too. I don't see why chilean stocks, retailers won't be in insolvency with argentina in chaos and really Chileans not being responsible at all the past few years. Consumer debt in Brazil and Chile exploded. So much business revenues are down 30% here year on year and it's like it caught everyone off guard even though they don't like the current president. Kicillof and Cristina are both a religious minority that were persecuted during the cold war and during Peron. Same with Dilma Rousseff...it is profitable to know this. I told everyone to short Brazil stocks in the past month with their joke election, currency crisis, and plane crash of Campos.

    Oct 02nd, 2014 - 12:34 pm - Link - Report abuse 0
  • ChrisR

    Obviously he told TMBOA that he was looking at the source of the problems troubling the currency and the economy.

    Clarin also claimed he lost the arm wrestling match with Kickitoff. Fabrega's manly arm was no defence to Kickitoff's four inch willy. Not as far as TMBOA was concerned.

    Let's all enjoy a little rock music:
    http://www.youtube.com/watch?v=IKe2OfXLxuc

    Bet you enjoyed that.

    Oct 02nd, 2014 - 01:02 pm - Link - Report abuse 0
  • Condorito

    @5 BioBio
    “I don't see why chilean stocks, retailers won't be in insolvency with argentina in chaos”

    Because the big retailers that have historically invested in Argentina have diversified portfolios across the region. None of them are dependent on Argentina.

    The biggest risk to Chile is Bachelet's tax reform and the $62 B budget just announced.

    Oct 02nd, 2014 - 01:10 pm - Link - Report abuse 0
  • reality check

    She's going to ruin Argentina right down to the wire.

    When she eventually goes, it's going to look like the Mongol Horde just rode through the place.

    Oct 02nd, 2014 - 01:19 pm - Link - Report abuse 0
  • yankeeboy

    I've long thought that she was deliberatly destroying the economy in the hopes people will remember the good time they had under part of her reign and the absolutely horrific time they'll have under the next administration.

    You'd have to be a complete moron to want that job next.
    Methinks they'll go through another 5 Presidents in a week like they did a decade ago.

    Oct 02nd, 2014 - 02:27 pm - Link - Report abuse 0
  • ElaineB

    @9 I don't think they will forget. Once they realise just how messed up everything is and how much money she has stolen. They will be burning effigies of her; we all know how they like to burn things,

    Oct 02nd, 2014 - 03:19 pm - Link - Report abuse 0
  • reality check

    One thing is for sure, no one is going to buy the, it wasn't us it was them, old mantra.

    They seem to have the idea, that a states liabilty ends with whichever administration, was in power when it was incurred. That they bear no legal or moral responsibility for those liabilities, that they can be ignored.

    That's not going to wash this time. This time they are going to be saddled with shit load baggage and a shit load of bridge building and it's not going to be easy.

    For a starters there's the minor matter of trust.

    Oct 02nd, 2014 - 03:41 pm - Link - Report abuse 0
  • DKtomer

    Until the end of 2015
    1 USD will be equal to 25-30 pesos.
    and as presidential elections will be over it will touch 30- 35 easily. This will be the right evaluation of peso.
    Future of Argentina is in dark because there is not even one leader with solution or vision. All have problems or blames to put on others.
    More dangerous situation is that they are blaming USA for their own issues like Iran, North Korea, Venezuela or Cuba etc.
    So Future is very clear, Argentina has alredy chosen it's fate and in near future, at least next 20 years, there is no hope for this economy.
    It will be more and more slave of China in exchange of pity loans.
    Welcome to the era of economical slavery, Argentina.

    Oct 02nd, 2014 - 05:53 pm - Link - Report abuse 0
  • MagnusMaster

    @9 I'm not sure she is deliberately destroying the economy but she definitely wants to make sure her successor takes all the political cost of the necessary reforms so she can get elected in 2019. This isn't a first: Menem and to a lesser extent Alfonsin did the exact same thing. It won't work for CFK just like it didn't work for Menem but that won't stop her trying.
    Macri and the Radicals have long waited for the moment a Peronist government collapsed, believing that would end the Peronist regime. But even with an economic collapse the Peronists will still be the only ones who are powerful enough to survive a presidential term and as long as that is the case they won't have a chance. So far, my bets are placed on Massa. The other Peronists are the biggest cowards on Earth.

    Oct 02nd, 2014 - 11:24 pm - Link - Report abuse 0
  • Hincha

    Can somebody; please explain me: Why is
    call “blue dollar”. I think a more appropiate
    term is “black dollar”.
    Thanks.

    Oct 02nd, 2014 - 11:43 pm - Link - Report abuse 0
  • Z-ville

    @12
    I don't see how they can prop up the peso that much for another year and a half. If you look at how much actual real production in Argentina is slowing down and how much pesos are floating around, the real conversion rate is likely well over 50:1.

    Oct 03rd, 2014 - 01:07 am - Link - Report abuse 0

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