Milei Pushes Central Bank Charter Reform

President Javier Milei is scheduled to present a bill to overhaul Argentina’s central bank charter on July 30. The draft would prohibit the bank from directly or indirectly financing the national Treasury, provincial and municipal governments, or purchasing government bonds in the primary market. Passage requires a two-thirds majority in both chambers of Congress.

From closing the central bank to reforming it: Milei's shift on monetary authority

Milei’s administration attributes Argentina’s chronic inflation—211 % in 2023—to past governments’ use of the central bank to fund fiscal deficits. The president’s 2023 campaign pledged to curb inflation, a goal he says has lowered the rate to around 30 % this year, while another government source cites a current 33.5 % rate. In 2012, under former President Cristina Fernández de Kirchner, the bank’s mandate was expanded to include employment, economic development and social equity, a change Milei argues opened the door to “money-printing” financing.

Milei announces plans to reform Argentina central bank

The bill would:

From closing the central bank to reforming it: Milei's shift on monetary authority

• Ban all forms of state financing, eliminating temporary Treasury advances and restricting primary-market purchases of government paper.

From closing the central bank to reforming it: Milei's shift on monetary authority

• Redirect gains from asset revaluation into a technical reserve rather than current spending.

From closing the central bank to reforming it: Milei's shift on monetary authority

• Require a two-thirds congressional vote to remove the bank’s president and board members, tightening removal procedures.

From closing the central bank to reforming it: Milei's shift on monetary authority

Since the start of 2026, the central bank has bought an average of US$97 million of dollars per day, building reserves to US$48.9 billion—the highest level since 2019. On January 2, the bank halted purchases for the first time that year.

Buenos Aires Times

Milei framed the reform as ending “91 years of fraud” and restoring the bank’s core mission of preserving currency value. He warned that financing the state would be “categorically prohibited.” International Monetary Fund Managing Director Kristalina Georgieva praised Argentina’s “much stronger position” and urged the central bank to continue building reserves. Economists note the reform aims to reduce financial turbulence ahead of the 2027 presidential election, while critics caution that ordinary legislation could be altered by future majorities.

Milei announces plans to reform Argentina central bank

• “The reform puts an end to the scam of counterfeiting money to finance politics,” — Javier Milei, inbox argentina's president

The Straits Times

• “Financing of the state is categorically prohibited. This applies both to the National Treasury and to provincial and municipal governments, as well as to any purchase of national government bonds on the primary market,” — Javier Milei, inbox argentina's president

Milei announces plans to reform Argentina central bank