The Argentine executive branch has submitted a bill to the Chamber of Deputies to overhaul the central bank's charter, focusing on currency value and ending public sector financing.
Key facts
- •The bill aims to replace the 2012 mandate that tasked the central bank with multiple goals including employment and social equity.
- •The government reports that it could have transferred up to 36.6 trillion pesos to the Treasury through advances.
- •Non-transferable notes on the central bank's books totaled 69.4 billion dollars as of April 2025.
- •The reform is part of a broader legislative package that includes a fiscal shackle mechanism and capital markets reforms.
- •Santiago Bausili currently serves as central bank president but has not yet received Senate confirmation.
The Argentine government has sent a bill to the Chamber of Deputies to reform the central bank's charter, following an outline provided by President Javier Milei in a nationwide broadcast. The measure is scheduled to enter the parliamentary record on Monday and will be referred to committees, with the government aiming for passage in August.
By the numbers
Core Mandate and Board Governance
The reform establishes the preservation of currency value as the central bank's primary mission, replacing the 2012 mandate that included financial stability, employment, and economic development. The bill also removes the board's authority to direct credit toward small businesses and regional economies. Additionally, it changes the process for removing board members, requiring an executive decree and a two-thirds majority vote from both legislative chambers, while eliminating the Economy Ministry's presence at board meetings.
Financing and Profit Restrictions
The bill prohibits the central bank from providing financing to the public sector, including the national government, provinces, the City of Buenos Aires, and municipalities. It repeals temporary advances, bans the purchase of government paper in the primary market, and removes freely available reserves. Furthermore, the reform restricts profit distribution to the Treasury, requiring that reserves reach at least 50% of the bank's capital and that any transfers be used exclusively for canceling public debt.
Timeline
- ThursdayPresident Javier Milei outlined the reform in a nationwide broadcast.
- FridayThe executive branch sent the reform bill to the Chamber of Deputies.
- MondayThe measure will formally enter the parliamentary record and be referred to committees.
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This article was independently rewritten by ManyPress editorial AI from reporting originally published by MercoPress.
