Buenos Aires, Jan 8 - Argentine President Cristina Fernandez de Kirchner Thursday sacked Central Bank president Martin Redrado, increasing the stakes in a power struggle over use of the country's foreign currency reserves to pay off state debt.

Fernandez de Kirchner issued a decree charging Redrado with "incurring in bad behaviour" and failing to fulfil "the duties of a public servant".

Redrado reportedly was not officially notified of the decision and heard about it from the media.

On Wednesday, centre-left Fernandez de Kirchner demanded Redrado's resignation after he refused to allow the government to use $6.57 billion of foreign currency reserves to help cover state debt payments due in 2010.

However, Redrado refused to step down.

In accord with the right-wing opposition to Fernandez de Kirchner, Redrado regards it as illegal to use reserves in this way.

The Argentine president was left with the option to sack him by decree, as she did.

A Congressional commission will have the final say in the matter. Congress is currently controlled by the opposition, although it is divided.

Argentine government Chief of Staff Anibal Fernandez Wednesday questioned Central Bank autonomy and slammed the maverick official.

"Redrado has taken on economic positions that do not correspond to the government's economic policy. It was not Redrado who gathered the reserves, it was the government," Fernandez told reporters. (dpa)