Argentina votes this week on the reform barring the central bank from funding the Treasury
Argentina's Chamber of Deputies will on Wednesday debate the reform of the central bank's charter promoted by Javier Milei's government, which bars the monetary authority from financing the fiscal deficit through money creation and restores preservation of the value of the currency as its sole objective.
Argentina's Chamber of Deputies is set to debate a reform of the central bank's charter this week, proposed by the government of President Javier Milei. The bill aims to bar the monetary authority from financing the fiscal deficit through money creation, restoring the preservation of the currency's value as the central bank's sole objective.
The reform also removes five functions added to the central bank's mandate by the 2012 reform and prohibits the purchase of government bonds on the primary market. The reform is intended to shield the institution from political pressures and consolidate a structure aimed at preventing a return to high inflation. A second bill, known as Fiscal Innocence II, is also to be debated, which expands a simplified scheme to bring undeclared assets into the formal system, with penalties for non-compliance reduced by 25%.
The debate comes amid deteriorating financial indicators in Argentina, with the country risk premium passing 470 basis points and sovereign bonds underperforming.
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