However, Mr Redrado appealed, arguing that under the central bank's charter, only Congress could remove him from his post, and a judge has since reinstated him and blocked the release of the funds until Congress returns from recess.
The timing of this political row is particularly unfortunate as Argentina is trying to restore its reputation by accessing international capital markets for the first time since it was barred in 2001 after defaulting on $100bn. The government is finalising negotiations with multilaterals for a bond swap this month designed to repay bondholders the $29bn owed to them.