Weird behavior of encoding & open pragmas

$ perl -e 'use encoding "ISO-8859-2"; use open ":encoding(ISO-8859-2)"; print 
ord($ARGV[0]), chr(260), $ARGV[0], "\n"' Ą
"\x{00a1}" does not map to iso-8859-2 at -e line 1.
260Ą\x{00a1}

I don't understand it: ord($ARGV[0]) is 260, chr(260) can be printed,
yet $ARGV[0] cannot be printed?

Which part of Perl performs the recoding of @ARGV here?

-- 
   __("<         Marcin Kowalczyk
   \__/       qrczak(_at_)knm(_dot_)org(_dot_)pl
    ^^     http://qrnik.knm.org.pl/~qrczak/