BUENOS AIRES,  (Reuters) – Argentine President  Cristina Fernandez yesterday fired the country’s central bank  president, who had rejected her calls to step down for refusing  to use foreign currency reserves to pay debt.

Fernandez issued a presidential decree to remove Martin  Redrado from office, citing misconduct and dereliction of  duties. The conflict has highlighted uncertainty in Argentina just  as Latin America’s No. 3 economy tries to win back investor  confidence and return to global markets with a bond issue eight  years after a massive default.

The Argentine leader on Wednesday asked Redrado to resign  after he blocked her order to use $6.6 billion in foreign  currency reserves to guarantee interest payments on bonds. He  remained at work saying only Congress could remove him.

Under the central bank’s charter, the executive branch can  dismiss a member of the bank’s board but must have a  recommendation from a special congressional committee.

The presidential decree, however, stated that Congress is  in recess and its recommendation is nonbinding.

Redrado angered Fernandez when he stalled for three weeks  after she ordered the Central Bank to move the money into a  Bicentennial Fund that she created to guarantee debt payments.

Argentina’s debt obligations rise steeply this year to $13  billion, and economists estimate a funding gap of $2 billion to  $7 billion.