Argentina: Milei proposes to Parliament that the Central Bank be reformed
In a televised address to the nation, the Argentine president announced that he would introduce reforms focused on monetary austerity to combat inflation.
In a televised address to the nation, Argentine President Javier Milei announced that he would present a reform of the Central Bank’s statutes to Parliament, focusing on monetary austerity to combat inflation.
The initiative aims to limit certain functions of the institution, with restrictions on the distribution of dividends arising from liquidity operations and the abolition of so-called non-transferable securities. The ultra-liberal leader stated that the measure forms part of a wider programme of reforms.
In this regard, he announced the introduction of what is known as the ‘fiscal brake’, a mechanism that would trigger a shutdown (a partial suspension of government activities), modelled on the US system, should Parliament fail to restore balance to the public finances.
The Central Bank’s new “constitution” aims to put an end to the “scam” of money creation and to the “theft perpetrated by politicians” through “currency manipulation to finance the state”, said Milei, who took the opportunity to once again attack the former president Cristina Kirchner, describing her as “convicted of corruption”.
