President Javier Milei reaffirmed the importance of the reform of the Central Bank's Organic Charter, stating that it is a central piece of the economic program of the Government.
During a radio interview, the president explained that the main objective of the initiative is to ensure monetary stability, reinforce the independence of the monetary authority, and definitively eliminate deficit financing through issuance.
In this context, the head of state was emphatic in defining the role that the organization should have: “The mandate is to preserve the value of the currency.”
Javier Milei and Luis Caputo
From that, he detailed that the project establishes an explicit prohibition of assistance to the Treasury, both direct and indirect: “We must explicitly prohibit the financing of the Central Bank, whether directly or indirectly, to the Treasury.”
According to Milei, the reform represents a turning point in the relationship between politics and economics. In that line, he stated that the new regulation “ends 91 years of political abuse of the private sector through inflation,” while introducing structural changes in the functioning of the entity.
Among them, he mentioned institutional strengthening: “The reform includes strengthening the governance of the Central Bank so that removing its authorities is difficult.”
The project also incorporates modifications in the treatment of the organization's profits. In that sense, the President pointed out: “We are prohibiting the distribution of fictitious profits and establishing mechanisms to capitalize the Central Bank,” which seeks to consolidate its financial solidity and avoid practices that affected stability in the past.
President Javier Milei
In addition to the monetary reform, Milei presented the guidelines of the paper Minimum Viable Scale, which was analyzed in the last Cabinet meeting.
There, the president highlighted that the document gathers “the theoretical foundations where the mathematical basis of what we do in the Government is found.”
In that same line, he asserted that the work demonstrates the viability of a model based on sustained growth: “The contribution is that we can demonstrate that there is growth based on increasing returns without having to use artificial patches.”
The Government's approach is based on capital accumulation, savings, investment, economic openness, and respect for property rights. According to Milei, these conditions are already beginning to reflect in the indicators: “We returned fifteen points of GDP in savings to Argentines because we closed the Treasury deficit and the quasi-fiscal.”
President Javier Milei
Regarding the outlook, the President stated that the economy is in a position to expand strongly: “Today the economy is in a position to grow at rates of 7 or 8 percent and we could double GDP in ten years and quadruple it in twenty.”
At the same time, he affirmed that record levels have been reached in key variables: “We are at historic highs of GDP, private consumption, and exports.”
Finally, he linked the reform of the Central Bank with a broader strategy aimed at channeling savings into investment: “The reform of the Central Bank, the capital market, and Innocent Fiscal 2 seek to ensure that the savings of Argentines finance investment and accelerate growth.”
In this context, he also highlighted the impact of the Government's international agenda: “Trips abroad are working: we have already secured investments of USD 150 billion through RIGI.”
