Argentina debates creation of a Federal Bank to replace the Central Bank

Constitutional lawyer Diego Armesto has argued that Argentina’s 1994 constitutional reform requires the establishment of a “Banco Federal,” a federal bank similar to the U.S. Federal Reserve, to replace the current Central Bank. He says the Constitution calls for a federal institution with monetary‑emission powers and that the existing Central Bank has become a tool of the executive, losing its autonomy.

President Javier Milei recently raised the issue, suggesting a reform of the Central Bank to restore its independence. Armesto links the proposal to the original intent of the 1994 amendment, noting that previous reforms in 2012 weakened the bank’s role. He warns that merely changing the name would not suffice; a deep institutional overhaul would be needed to define the board’s composition, functions, and the bank’s relationship with Congress.