Marcó del Pont admitted excesses in issuance and the Government advances with the BCRA reform

Former Central Bank President Mercedes Marcó del Pont admitted in an interview that the monetary issuance policy applied during the Kirchnerist governments may have gone too far. Her statements come in parallel with the progress of the reform project of the BCRA Charter promoted by the Executive Branch.

What did Marcó del Pont say about issuance?

In an interview with El Cronista’s streaming, the economist stated that «monetary issuance, in certain circumstances, there indeed must be a limit» and, when asked about the management carried out during the governments she was part of, she replied: «It may be that they went too far.» She also criticized the management of public spending and stated that «we must converge towards fiscal balance,» although she differentiated her position from that of the current Government by adding «but not like this Government does.»

Marcó del Pont presided over the BCRA between 2010 and 2013, during Cristina Kirchner’s second presidency, and participated in the reform of the entity’s Charter approved in 2012. Her statements contrast with the criticisms she had made weeks earlier regarding the Government’s intention to modify that norm again.

What does the Government propose with the BCRA reform?

According to the Presidency of the Nation, President Javier Milei led a Cabinet meeting at Casa Rosada, after the events for Independence Day, in which he provided details about the reform project of the Central Bank’s Charter that is being drafted. The Government is working on finalizing the text of the draft, whose official announcement is expected in the coming weeks. Once completed, it will be sent to the National Congress for consideration.

The initiative seeks to limit monetary discretion and establish as the entity’s central objective the preservation of the value of the currency. In this framework, President Milei had responded to the criticisms of Marcó del Pont and also former BCRA president Miguel Pesce with harsh statements, calling them «economic illiterates» and pointing out that «doing the opposite is a good intuition.»

What data supports the economic context?

Marcó del Pont’s admission occurs in a context of high inflation inherited from the previous administration. According to official data, annual inflation was 211.4% in 2023 and 94.8% in 2022. These numbers reflect the result of the economic model that combined fiscal deficit, exchange controls, and monetary financing of the Treasury.

• Annual inflation 2023: 211.4%
• Annual inflation 2022: 94.8%
• Marcó del Pont’s presidency period at the BCRA: 2010-2013
• Reform of the BCRA Charter in 2012
• Current reform project: being drafted by the Executive Branch

What is the difference between the positions?

While Marcó del Pont recognizes the need for limits on issuance and fiscal balance, Milei’s Government proposes a structural reform that prevents discretion in monetary management. The former official, however, distances herself from the current program by stating that she does not share the way the Government implements its policies.

The reform of the BCRA Charter is a central point of the ruling party’s economic agenda, which seeks to shield the bank’s independence and prevent the Treasury from using issuance as financing. The project has not yet been formally presented, but the Executive anticipated that it will do so in the coming weeks.

What should be closely monitored?

The key data to follow is the official presentation of the draft reform of the BCRA Charter, which the Government promised for the coming weeks. There, the specific details of the initiative will be known, such as changes in the bank’s objectives, restrictions on issuance, and the mechanism for appointing authorities. It will also be relevant to observe the reaction of the opposition and former BCRA presidents, who have already expressed their rejection.