In parallel, Milei announced complementary reforms aimed at the markets. Regarding the financial system, he stated: “We will promote a project for deep liberalization of our capital market with one idea: remove the State from the middle and let savings flow to those who want to produce.”
On insurance, he indicated: “There will be absolute freedom for companies to design and offer products without prior authorization from the regulator” and added: “Our insurance will become simpler, faster, and cheaper.”
Finally, the President linked all measures within an integral strategy: “These reforms have a legislative sequence, but they are all interconnected.”
And he closed: “Zero deficit will distance us from the poisonous fruit of the forbidden tree that is monetary issuance. The reform of the Central Bank will prevent politicians from counterfeiting those fruits, and a deep financial market will allow access to credit, better conditions, and coverage so that agents can pursue their own projects in freedom.”
“Together, they will put an end to 91 years of looting, expropriation, impunity, and decay and will allow us to make Argentina great again,” he concluded.
The president Javier Milei announced via national broadcast the project to reform the Organic Charter of the Central Bank of the Argentine Republic (BCRA), in a speech focused on questioning historical economic policy and particularly the role of the monetary entity.
Accompanied by members of his Cabinet and the economic team, the president defined the initiative as a structural turning point.
“We are here to present the most important set of structural reforms in the last 91 years. In particular, the reform of the Organic Charter of the Central Bank aims to put an end to the scam of counterfeiting money to finance high politics,” he stated.
The core of the message was centered on the relationship between monetary issuance and inflation. In this context, the President asserted: “The reform of the Organic Charter aims to put an end to the scam of counterfeiting money to finance high politics, whose most evident manifestation is the inflation rate, also known as the inflation tax.”
President Javier Milei
To support his diagnosis, Milei reiterated historical figures on price evolution: “The accumulated inflation rate since the creation of the Central Bank amounts to 12,819,532,788,614,400,000 percent. I repeat: 12,819,532,788,614,400,000 percent. It is a 20-digit figure.”
Additionally, he added: “The very creation of the Central Bank led to an increase in monetary issuance that sextupled the inflation rate and, over a decade, robbed Argentines of 50% of their salaries.” In that vein, he reinforced his criticisms of the role of the monetary authority: “The Central Bank has been a tool that enabled the theft of high politics.”
The Central Bank Reform of Milei
During the announcement, the president detailed five central premises of the reform. First, he indicated that the objective of the agency will be redefined: “The absurdity of five objectives for one instrument ends, and the fundamental mission of the Central Bank will again be to preserve the value of the currency.” He also anticipated that “the financing of the State is strictly prohibited,” including the Treasury, provinces, municipalities, and the purchase of public securities in the primary market.
Another key point focuses on the governance of the agency: “The third modification is related to shielding the president of the Central Bank and the board from political abuses. Removal will require two-thirds not only from the Senate but also from the Chamber of Deputies.”
This is complemented by restrictions on dividend payments and the elimination of instruments introduced in 2012: “Other changes introduced by the 2012 Organic Charter are completely eliminated, while the scam of non-transferable letters is also abolished.”
Javier Milei and Luis Caputo
The announcement also included the implementation of a mechanism called “fiscal shackles.” “If for several consecutive months the fiscal result is deficit and Congress does not return the accounts to balance, an automatic shutdown will come into effect,” he explained.
In that scenario, he added: “During the duration of the shackles, the President, the Vice President, senators, deputies, ministers, secretaries, and undersecretaries will not receive a single peso in salary.” He concluded: “For the first time in our history, if politics does not do its homework, politics will bear the cost, not the people.”
