World

Argentine stocks plunge in sell-off after central bank chief is replaced

FILE - In this Aug. 4, 2014 file photo, Argentina’s President of the Securities and Exchange Commission Alejandro Vanoli talks during a press conference in Buenos Aires, Argentina. Vanoli will replace Juan Carlos Fabrega as Argentina’s Central Bank President after his resignation Wednesday Oct. 1,  2014.  (AP Photo/Natacha Pisarenko, File)

FILE - In this Aug. 4, 2014 file photo, Argentina’s President of the Securities and Exchange Commission Alejandro Vanoli talks during a press conference in Buenos Aires, Argentina. Vanoli will replace Juan Carlos Fabrega as Argentina’s Central Bank President after his resignation Wednesday Oct. 1, 2014. (AP Photo/Natacha Pisarenko, File)  (The Associated Press)

Argentina's Merval stock index is dropping nearly 9 percent in a sell-off sparked by the naming of a new central bank chief who many believe will favor interventionist policies.

The index was falling 8.5 percent at 10,536 points in Thursday afternoon trade.

Traders expect that new central banker Alejandro Vanoli will order even more restrictive currency controls to stem capital flight and try to boost Argentina's frail economy.

Juan Carlos Fabrega resigned Wednesday after President Cristina Fernandez publicly criticized the monetary institution for allegedly leaking inside information that led to a steep drop in the peso.