Cuattromo’s Term on Argentina Central Bank Board Ends Today

  • Tenure of Fernandez de Kirchner appointee terminated early
  • Replacement could speed up policy-making: Nomura’s Morden

Argentina’s central bank said the term for one of its directors appointed by former President Cristina Fernandez de Kirchner will end on today.

Juan Miguel Cuattromo will step down, the central bank said in a statement in the gazette. He was appointed in October 2015 to replace D. Waldo Jose Maria Farias, who resigned. The bank’s board has eight directors, a president and a vice president.

The central bank decided to end his term early after it determined that Cuattromo’s appointment should have been to finish Farias’ full term, not to serve a separate full six-year period, according to the statement in the gazette. The government hasn’t named a replacement. His absence won’t affect operations in the meantime because the board can function with a minimum of five directors, the bank’s press office said.

President Mauricio Macri overhauled the central bank’s directors board within days of taking power, naming Federico Sturzenegger to replace Alejandro Vanoli, who resigned, saying he didn’t want to be part of Macri’s plans to devalue the peso. Macri also appointed a vice president and five directors, leaving just three from the previous administration: Cuattromo, Pedro Biscay and German Feldman.

Sturzenegger’s first task was to oversee the removal of currency restrictions and to allow a tightly controlled peso to float.

While the three leftovers from the Kirchner era were a minority in board meetings and couldn’t block decisions, naming a new director will help with technical aspects and speed up policy making, said Siobhan Morden, head of fixed-income strategy at Nomura Securities International Inc.

“There’s probably a need for more technical feedback instead of spending so much time talking about ideology,” Morden said by phone from New York.

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