Argentina's president fires central bank chief over foreign reserves

But questions over the legality of Fernandez's action have raised the likelihood of a double-barreled political and economic crisis.

Fernandez's dismissal decree followed an emergency meeting with her ministers in the afternoon after bank head Martin Redrado rejected her call to resign.

The banker justified his refusal by saying any transfer of reserves must be approved by Congress, which is in recess.

"It's not a measure I wanted to take," Fernandez told reporters after the meeting. She said she had no choice given Redrado's "failure to carry out the duties of a public servant," adding that the bank's vice president would assume Redrado's duties until a permanent replacement is named.