Argentina's Central Bank Reform Faces Critical Vote This Week
By Editor • August 23, 2026 • 1 min read
Argentina's Chamber of Deputies is set to discuss a significant reform to the central bank's charter on Wednesday, initiated by Javier Milei's administration. This proposed legislation aims to prevent the central bank from financing the fiscal deficit through money creation, reaffirming the preservation of currency value as its primary goal.
The reform seeks to eliminate five additional roles established in 2012, which included promoting employment and equitable economic development, replacing them with a sole focus on currency stability. Additionally, it would prohibit the central bank from acquiring government bonds on the primary market, a traditional method of financing the Treasury.
Central bank officials, including Governor Santiago Bausili, have defended the initiative as a necessary measure to protect the institution from political influence and to combat inflation. A related bill, Fiscal Innocence II, aims to bring an estimated $170 billion in undeclared assets into the formal economy.
As financial indicators worsen, including a risk premium exceeding 470 basis points, the governing coalition is optimistic about securing the votes needed in this crucial session.
Source: en.mercopress.com
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