The head of Argentina’s central bank has resigned amid reports of a row over policies to restore confidence in the country’s ailing economy.<\/p>\n
Luis Caputo had only held the post since June, and the surprise resignation sent the peso falling further against the US dollar.<\/p>\n
A statement said he quit for personal reasons and will be replaced by deputy economics minister Guido Sandleris.<\/p>\n
Argentina is finalising a $50bn bailout from the International Monetary Fund.<\/p>\n
With Argentina in recession, interest rates at 60%, and the peso’s value halving this year, the country needs the IMF loan to bolster confidence in the economy.<\/p>\n
President Mauricio Macri is in New York this week for a United Nations meeting, but was due to meet Wall Street financiers and potential investors.<\/p>\n
When Mr Caputo, a former finance minister, was appointed three months ago, there were questions about the government’s commitment to the central bank’s independence.<\/p>\n
A statement from the bank said: “This resignation is due to personal reasons, with the conviction that a new agreement with the International Monetary Fund will re-establish confidence in the fiscal, financial, monetary and exchange rate situation.”<\/p>\n
However, the news sparked a further 4% fall in the peso, while the country’s main share market fell more than 5% at the open.<\/p>\n
Argentina’s Ambito Financiero financial newspaper reported that there may have been differences between Mr Caputo and finance minister Nicolas Dujovne. It is thought that Mr Caputo did not play a central role in the IMF negotiations.<\/p>\n
Last week the government announced that Argentina’s economy shrank by 4.2% in the second quarter, its sharpest quarterly contraction since 2014.<\/p>\n
The decline was accompanied by a steep fall in exports, after a drought hurt the country’s agricultural sector.<\/p>\n
<\/p>\n
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