Argentina's President Milei pushes overhaul of Central Bank charter to curb monetary financing

President Javier Milei told legislators that his administration is drafting a reform of the Argentine Central Bank’s Organic Charter aimed at prohibiting the financing of public spending through money issuance. The proposal, prepared with Economy Minister Luis Caputo, Central Bank President Santiago Bausili and Desregulation Minister Federico Sturzenegger, targets four articles of the charter – 3, 6, 14 (f) and 20 – to restore a single mandate of price stability, shrink the board, and end the bank’s ability to transfer profits or provide short‑term advances to the Treasury.

Milei framed the change as a decisive step to end inflation, calling the 2012 law a “declaration of ignorance” that added employment and social equity goals to monetary policy and opened the door to deficit‑funding. He rejected criticism that the reform was driven by IMF demands, though the IMF has previously noted that strengthening the bank’s independence would be important for Argentina’s program. The government says the reform would revert the charter to its pre‑2012 design, limiting the Central Bank’s role to preserving the value of the currency.