MercoPress. South Atlantic News Agency

Cristina Fernandez to testify on dollar/futures; supporters camping outside the courthouse in Buenos Aires

Cristina Fernandez has been called to testify about alleged irregularities in dollar futures trading that led to losses of almost US$4 billion for the central bank.

Hundreds of supporters are expected to cheer former Argentine President Cristina Fernandez during a court appearance on Wednesday after returning to Buenos Aires for the first time since November's election.Fernandez who governed Argentina for eight years, has been called to testify about alleged irregularities in dollar futures trading that led to losses of almost US$4 billion for the central bank. Her allies say no crime was involved and that she's being politically persecuted.

 In effect former Economy minister and lawmaker Axel Kicillof was questioned on the case on Tuesday morning, where he presented a writ before Judge Claudio Bonadío. He was received by activists that are camping outside the courthouse building waiting for Cristina Fernandez deposition this Wednesday.

“There is no crime, neither corruption nor bribery crimes by no official from the Central Bank or the previous government”, said Kicillof who added Bonadio decided to question him and the ex-head of state based on “nonexistent proofs.”

“What is being investigated in this case went on changing, looking for some crime to blame me for. I have read the 1,000 pages of the case and I still don’t know what I am being accused of,” he said.

“The accusation is so absurd that I don’t know how to begin my explanation.”

Kicillof defended as well the political and economic decisions made during the administration of Cristina Kirchner. “All central banks in the world carry out control practices; it is a normal and regular operation in foreign exchange policy.”

Daniel Scioli, who lost the November presidential runoff to Mauricio Macri also stood up to defend Cristina Fernandez

“The accusation against Cristina for issues related to the powers of the Central Bank is absolutely unfair” Scioli told Argentina’s C5N news network.

The politician also expressed concern about Macri’s economic policies and rejected further austerity measures, pointing to a new “downward social mobility” and worsening economic situation since the start of Macri’s conservative administration.

Wednesday will be the first of a string of cases involving money-laundering and corruption allegations that Fernandez is likely to face as the judicial system investigates her and former members of her administration.

The legal cases will make it difficult for her to impose herself as the leader of a united Peronist opposition to President Mauricio Macri, said Alejandro Catterberg, director of polling firm Poliarquia.

”I don't know if she'll end up in prison, but I wouldn't be surprised if Cristina will have to spend many, many years answering questions in legal cases, as has happened with other ex-presidents of this country,“ Catterberg said.

”It's going to cause her to lose even more popularity and creates more incentives for traditional Peronism to go elsewhere.”

Cristina Fernandez faces allegations that under her watch the central bank sold dollar futures at artificially low rates during the presidential elections knowing that the new administration would devalue the peso. The bank, headed at the time by Alejandro Vanoli, sold billions of dollar-future contracts between September and November, according to a Feb. 26 order issued by Judge Claudio Bonadio.

One of Macri's first measure after assuming office on Dec. 10 was to lift currency controls and let the peso float, causing a devaluation of about 30%.