Argentina: Milei administration pushes Central Bank reform

The administration of Javier Milei is accelerating efforts to reform the Central Bank (BCRA) to prevent the entity from financing the state deficit through money printing. The proposed reform of the Organic Charter aims to restrict monetary assistance to the Treasury, redefine institutional objectives, and deregulate capital markets. To secure legislative support, the government has convened a plenary of the Finance and Budget commissions, inviting several economists to defend the initiative.

A key component of the reform is the establishment of a two-thirds majority requirement in both chambers of Congress to remove the Central Bank president or directors, a measure intended to protect monetary policy from political shifts.

Simultaneously, political maneuvering is intensifying ahead of the 2027 elections. La Libertad Avanza is seeking broad alliances to challenge Peronist dominance in the Province of Buenos Aires, potentially targeting electoral reforms such as the elimination of PASO primaries. Within the Peronist movement, figures like Mario Secco are navigating potential candidacies for the governorship of Buenos Aires as internal dynamics shift.