Report Warns Argentina Central Bank Reform Could Unlock Borrowing Against Reserves
A consultancy report warns that Milei's rewrite of Argentina's central bank charter would make it easier to borrow abroad against reserves. Neuquen's governor backed the bill days before a scheduled vote. The post Report Warns Argentina Central Bank Reform Could Unlock Borrowing Against Reserves appeared first on The Rio Times .
On 26 August, the Argentine deputies are scheduled to vote on a central bank reform bill. The government, led by President Javier Milei, argues the draft would prevent the central bank from borrowing abroad using its reserves as collateral. However, a private report by consultancy PxQ, run by former Deputy Economy Minister Emmanuel Alvarez Agis, suggests the bill would actually allow the bank to raise debt in international markets using its reserves.
If the Treasury cannot access global capital markets, the central bank could borrow on its own using these reserves, potentially expanding its capacity to issue foreign debt. The bill would replace the central bank's broader mandate, which included employment and social development, with a single mandate to preserve the value of the currency.
The concerns raised by PxQ relate to the broad language in the clause about using reserve assets as collateral. While the government claims the reform protects the currency, critics argue it provides the central bank with a new form of borrowing. The bill must pass both chambers of Congress before it can be enacted.
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