Milei Central Bank reform would ban financing state spending
Milei’s push to fortify the Central Bank contrasts with his campaign pledges in 2023 to dollarise the economy and definitively shutter the institution he described as “the worst garbage that exists on this Earth.” Leer más
President Javier Milei announced a bill on Thursday night to reform Argentina's Central Bank, prohibiting it from financing government spending in the future. This legislation would also require a supermajority of two-thirds from both houses of Congress to remove a Central Bank governor, aiming to strengthen the institution's independence.
Milei emphasized that the Central Bank has been a tool for political corruption, stating his reform seeks to put an end to such practices. The Central Bank's mandate was expanded in 2012 to include monetary and financial stability, employment, and economic development with social equity, enabling it to print money to fund government spending.
Milei's reform seeks to eliminate this role, ensuring the bank's core mission is to preserve the peso's value. Since taking office in December 2023, Argentina has relied on spending cuts to eliminate fiscal deficits, banning monetary financing through executive order. The proposed legislation would codify these restrictions in law, making it more difficult for future administrations to misuse the Central Bank for public spending.
Written by urgent.news from Buenos Aires Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
