Argentina's President Milei pushes central bank charter reform

President Javier Milei announced that his government is drafting a reform of the organic charter of the Central Bank of the Argentine Republic (BCRA). The proposal seeks to ban all direct and indirect financing of the Treasury by the central bank, limit monetary emission to preserve the peso’s value, and strengthen the institution’s independence. It would introduce criminal penalties for officials breaching the new rules and tighten governance by making removal of the bank’s board more difficult. The reform also plans to end the distribution of “fictional” profits, cap the use of non‑transferable letters that have historically funded public spending, and promote the bank’s capitalisation. Milei framed the changes as essential to curb fiscal deficits, curb inflation, and prevent future governments from resorting to money‑printing to cover expenditures.