Argentine President Cristina Fernandez de...

Martin Redrado claimed however that he could only be removed by Congress and has agreed to step aside, but not to resign. He is also set to challenge the decree in court.

Redrado had earlier refused a presidential order to transfer $6.6 billion to a government fund to pay off foreign debts. Argentina has $13 billion of international debt due to mature this year. It also has a budget deficit of up to $7 billion.

In dismissing Redrado, the president said he had "failed to fulfill the duties of a public servant."

Redrado"s deputy, Miguel Pesce, who backed the decision to use the country"s reserves to pay off foreign debt, has taken over as interim head of the central bank.

MOSCOW, January 8 (RIA Novosti)