{"id":2558,"date":"2018-09-25T19:26:49","date_gmt":"2018-09-25T19:26:49","guid":{"rendered":"http:\/\/www.styledeals.co.uk\/blog\/argentinas-central-bank-boss-luis-caputo-quits-after-three-months\/"},"modified":"2018-09-25T19:26:49","modified_gmt":"2018-09-25T19:26:49","slug":"argentinas-central-bank-boss-luis-caputo-quits-after-three-months","status":"publish","type":"post","link":"https:\/\/www.styledeals.co.uk\/blog\/argentinas-central-bank-boss-luis-caputo-quits-after-three-months\/","title":{"rendered":"Argentina&#8217;s central bank boss Luis Caputo quits after three months"},"content":{"rendered":"\n<div property=\"articleBody\">\n<figure class=\"media-landscape no-caption full-width lead\"><span class=\"image-and-copyright-container\"><\/p>\n<p>                <img loading=\"lazy\" decoding=\"async\" class=\"js-image-replace\" alt=\"Luis Caputo\" src=\"https:\/\/ichef.bbci.co.uk\/news\/320\/cpsprodpb\/12A45\/production\/_103575367_caputo.png\" width=\"976\" height=\"549\"\/><span class=\"off-screen\">Image copyright<\/span><br \/>\n                 <span class=\"story-image-copyright\">AFP<\/span><\/p>\n<p>            <\/span><\/p>\n<\/figure>\n<p class=\"story-body__introduction\">The head of Argentina&#8217;s central bank has resigned amid reports of a row over policies to restore confidence in the country&#8217;s ailing economy.<\/p>\n<p>Luis Caputo had only held the post since June, and the surprise resignation sent the peso falling further against the US dollar.<\/p>\n<p>A statement said he quit for personal reasons and will be replaced by deputy economics minister Guido Sandleris.<\/p>\n<p>Argentina is finalising a $50bn bailout from the International Monetary Fund.<\/p>\n<p>With Argentina in recession, interest rates at 60%, and the peso&#8217;s value halving this year, the country needs the IMF loan to bolster confidence in the economy.<\/p>\n<p>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<ul class=\"story-body__unordered-list\">\n<li class=\"story-body__list-item\"><a href=\"https:\/\/www.bbc.co.uk\/news\/business-45579144\" class=\"story-body__link\">Argentine GDP in steepest fall since 2014<\/a><\/li>\n<li class=\"story-body__list-item\"><a href=\"https:\/\/www.bbc.co.uk\/news\/world-latin-america-44107630\" class=\"story-body__link\">Why confidence in Argentina&#8217;s economy is dwindling<\/a><\/li>\n<\/ul>\n<p>When Mr Caputo, a former finance minister, was appointed three months ago, there were questions about the government&#8217;s commitment to the central bank&#8217;s independence.<\/p>\n<p>A statement from the bank said: &#8220;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.&#8221;<\/p>\n<p>However, the news sparked a further 4% fall in the peso, while the country&#8217;s main share market fell more than 5% at the open.<\/p>\n<p>Argentina&#8217;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<p>Last week the government announced that Argentina&#8217;s economy shrank by 4.2% in the second quarter, its sharpest quarterly contraction since 2014.<\/p>\n<p>The decline was accompanied by a steep fall in exports, after a drought hurt the country&#8217;s agricultural sector.<\/p>\n<figure class=\"media-landscape no-caption body-width\"><span class=\"image-and-copyright-container\"><\/p>\n<p>            <\/span><\/p>\n<\/figure>\n<figure class=\"media-landscape has-caption full-width\"><span class=\"image-and-copyright-container\"><\/p>\n<p>                 <span class=\"off-screen\">Image copyright<\/span><br \/>\n                 <span class=\"story-image-copyright\">Getty Images<\/span><\/p>\n<p>            <\/span><figcaption class=\"media-caption\"><span class=\"off-screen\">Image caption<\/span><br \/>\n                <span class=\"media-caption__text\"><br \/>\n                    A 24 hour general strike on Tuesday in Argentina meant no public transport or taxis were running<br \/>\n                <\/span><br \/>\n            <\/figcaption><\/figure>\n<h2 class=\"story-body__crosshead\">Analysis: Daniel Gallas, BBC South America business correspondent<\/h2>\n<p>These are crucial days for the future of Argentina.<\/p>\n<p>The country&#8217;s currency is suffering from a major confidence crisis that could potentially be averted if the government secures backing from the IMF and pushes through with some of its economic reforms.<\/p>\n<p>But questions have also been raised about lack of leadership.<\/p>\n<p>Mr Macri has been criticised for announcing the IMF deal on television last month before it was actually negotiated in Washington.<\/p>\n<p>There are reports of backstage disputes within his economic team, which gained traction with the resignation of Mr Caputo.<\/p>\n<p>While the deal is not finalised, markets are operating more on rumours than on news. Some say Argentina could get extra funds from the IMF.<\/p>\n<p>Meanwhile, the opposition is gathering support in the streets with a 24-hour strike on Tuesday that could be just a taste of what lies ahead for Argentina.<\/p>\n<\/p><\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/www.bbc.co.uk\/news\/business-45643974\">Source<\/a> by <a href=\"\">[author_name]<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Image copyright AFP The head of Argentina&#8217;s central bank has resigned amid reports of a row over policies to restore confidence in the country&#8217;s ailing economy. Luis Caputo had only held the post since June, and the surprise resignation sent the peso falling further against the US dollar. A statement said he quit for personal &hellip; <\/p>\n","protected":false},"author":0,"featured_media":2559,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2558","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general"],"_links":{"self":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts\/2558","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=2558"}],"version-history":[{"count":0,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts\/2558\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/media\/2559"}],"wp:attachment":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=2558"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=2558"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=2558"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}