"I feel that my cycle in the Central Bank has concluded," said Redrado, who had appeared increasingly isolated this week after the bank's board of directors installed Vice President Miguel Pesce as interim president. "I've left the Central Bank with a better institutional reputation, with an independent criteria, a Central Bank that gives Argentines the peace of mind that they've had during these years," Redrado told a news conference.
Pesce, an economist who is seen as close to the government, took charge of the bank last week after another court ruled that Congress should have a say on Redrado's firing. The ruling said the government could not appoint a new permanent director until a congressional commission had issued its opinion, which Fernandez's administration interpreted as meaning they could appoint an interim chief.
The same court upheld a freeze on the government plan to create a fund with the country's dollar reserves, but Fernandez could still try to win support for the plan in Congress. Police barred Redrado from entering the bank's premises on Sunday and even opposition lawmakers said it was time for him to step aside.
TURMOIL The turmoil at the monetary authority has rattled financial markets in Latin America's No 3 economy just as the cash-strapped government seeks to woo investors by offering to swap $20 billion in defaulted sovereign bonds. Government ministers have said repeatedly that the swap is on track and economic analysts expect it to launch in the coming weeks.
Redrado's departure, coupled with the recommendations from the special congressional committee, should ease political tensions and allow the government to focus on the debt exchange - seen as a key step in Argentina's drive to return to global credit markets eight years after a massive default.
The commission has been meeting this week, but any recommendations will be non-binding and Pesce has been at the helm of the Central Bank in the meantime. Cabinet Chief Anibal Fernandez said President Fernandez would not accept Redrado's resignation until the congressional commission gives its verdict on the issue next week. "The congressional commission is going to publish its recommendation on Tuesday and once we have that the president will make the decision that she has to make. There's no resignation as far as we're concerned," he said.