A US court has ordered it to halt interest payments to creditors who agreed to take steep losses until it settles a $1.3bn dispute with the "holdout" hedge funds refusing to accept a writedown.
The row has put a spotlight on the central bank's shrinking reserves, which fell from $50bn in 2011 to $28bn today.
Mr Fabrega, a long-time central bank official, had held the highly sensitive top job for less than a year.
He was in the post when Argentina devalued the peso by 18pc in January.
Mr Fabrega will be replaced by Alejandro Vanoli, currently the head of the National Securities Commission, the regulatory agency for stocks and other securities.
Ms Kirchner's national address on Tuesday came after Argentina deposited a $161m payment on its restructured debt into a Buenos Aires account of the state-run Banco Nacion, looking to circumvent the US court ruling by changing the payment venue.
The move has earned the country a contempt-of-court ruling from US federal judge Thomas Griesa, who has blocked former payment agent Bank of New York Mellon from forwarding Argentine interest payments to bondholders.
In a tortuous speech, Ms Kirchner lashed out at Argentine business interests and the United States, which her government accuses of supporting the "vulture funds".
She said that on her recent visit to fellow Argentine Pope Francis - whose help she has sought in the ongoing debt row - police warned her about supposed plots against her by the Islamic State group.
The address appeared to unsettle markets. On the Merval stock index in Buenos Aires, 68 out of 80 companies' stocks posted losses.
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