BUENOS AIRES, Jan 11 (Reuters) – An Argentine judge on Monday was analyzing a government appeal of a court ruling that blocked its plan to use foreign currency reserves to repay debt and reinstated the ousted central bank president.

The plan by President Cristina Fernandez to use billions of dollars to make debt payments has set off an escalating political battle and shaken Argentine financial markets.

Fernandez used a presidential decree to fire Central Bank President Martin Redrado on Thursday for refusing to support the plan.

His ouster was overturned a day later by a federal judge, who also blocked Fernandez’s plan to tap Argentina’s reserves to create a debt repayment fund aimed at guaranteeing the country’s 2010 debt payments.

The turmoil at the central bank has highlighted political instability in Argentina as Fernandez’s cash-strapped government seeks to charm investors and tap international credit markets for the first time after a massive debt default eight years ago.