Martín Redrado resigned his post as president of Argentina’s Central Bank last night. Bloomberg News has a comprehensive round-up. Most interesting was a quote from an analyst to the effect that this is not a huge deal because the Central Bank lost its autonomy years ago, and that Redrado is mostly at fault for the loss of autonomy because he did not stand up to the Kirchners until it was too late.
Early in the showdown over the Central Bank’s reserves, Redrado had threatened to expose “friends of the power” who purchased dollars from the Central Bank, possibly on inside information that the Central Bank was set to devalue the Argentine currency. The executive responded by threatening to prosecute Redrado for a cover up if he does not release the names. It will be interesting to see if Redrado is now forced to follow through on his threat.
Somehow, I doubt he will be.
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