Argentine stocks plunge after central banker quits

AP News
Posted: Oct 02, 2014 3:28 PM
Argentine stocks plunge after central banker quits

BUENOS AIRES, Argentina (AP) — Argentina's Merval stock index was dropping sharply on Thursday in a sell-off sparked by the naming of a new central bank chief who many believe will favor interventionist policies.

The index was down 8.5 percent at 10,536 points in Thursday afternoon trade.

Traders expect that new central banker Alejandro Vanoli will order even more restrictive currency controls to stem capital flight and try to boost Argentina's frail economy.

Juan Carlos Fabrega resigned on Wednesday after President Cristina Fernandez publicly criticized the monetary institution for allegedly leaking inside information that led to a steep drop in the peso.

Confidence has been dwindling in Argentina's economy, which is in recession as it grapples with falling central bank reserves and one of the world's highest inflation rates.