Milei to Send Bausili's Nomination to Congress to Shield BCRA Post-2027

President Javier Milei will announce tomorrow at 8:00 PM, in a pre-recorded national broadcast from the White Room of the Casa Rosada, the project to reform the Central Bank (BCRA) Charter. According to El Destape, the submission to Congress will take place the following week. The initiative seeks, among other points, to ratify the current BCRA president, Santiago Bausili, so that he remains in office beyond 2027, the year of the next presidential elections.

Shielding the BCRA President and Changes to Removal

According to El Destape, the project establishes that removing the president and directors of the BCRA will require a two-thirds vote in both chambers of Congress. This measure, according to sources from the Casa Rosada cited by El Destape, aims to «give greater independence in decision-making» and prevent «politics from interfering.» The primary source, the statement from the Presidency of the Nation, confirms that the project is being drafted and that the official announcement is expected in the coming weeks, although it does not detail the specific points. For its part, El Destape adds that Milei wants to «definitively shield Bausili» and that the nomination of the current BCRA head will be sent to Congress for ratification post-2027. Both sources agree that the initiative includes restrictions on Treasury financing, but they differ in the level of detail: while the Presidency only mentions that work is being done on the text, El Destape specifies that financing the national Treasury, provinces, and municipalities will be prohibited.

Prohibition of Treasury Financing and Other Changes

The project, according to El Destape, includes the prohibition of the BCRA financing the national Treasury, provinces, and municipalities. This measure aims to «restrict the Central Bank’s ability to finance governments» and «preserve the value of the currency,» according to sources from the Casa Rosada cited by El Destape. The primary source does not explicitly mention this prohibition, but it does indicate that the project is being drafted and that the president will provide details in his presentation. The coincidence between both sources suggests that the restriction on financing is a central point, although the official source does not yet confirm it directly.

Practical Impact: Who It Affects and When

The reform of the BCRA Charter would have concrete consequences for different actors. Below are the effects according to available information:

• Immediate: The submission of the project to Congress generates uncertainty in financial markets and among investors, who await definitions on the economic direction. The announcement on the national broadcast tomorrow at 8:00 PM marks the start of the public debate.
• Conditional on legislative approval: If Congress approves the reform, the BCRA will not be able to finance the Treasury, which will limit the ability of the government in office to issue money and cover fiscal deficits. Additionally, the ratification of Bausili by two-thirds of both chambers would ensure his continuity until after 2027, even if an opposition government wins the elections.
• Still uncertain: It is not clear whether the ruling party will achieve the necessary two-thirds in Congress to approve the reform and the ratification of Bausili. The exact processing timelines are also unknown, nor whether there will be modifications to the original project.

Assessment of the Information

To calculate the potential impact of the reform, the following data are considered: according to El Destape, the project requires two-thirds of both chambers for the removal of the BCRA president. Currently, the ruling party has 57 deputies out of 257 (22.2%) and 7 senators out of 72 (9.7%), far from two-thirds. This implies that the approval of the reform and the ratification of Bausili depend on agreements with the opposition. No currency conversions are made because there are no economic values in the sources.

What to Follow

It is advisable to follow tomorrow’s announcement on the national broadcast, where the president will detail the scope of the project. It will also be key to monitor the reaction of opposition blocs in Congress, especially Unión por la Patria and the PRO, whose votes will be decisive in reaching two-thirds. Additionally, attention should be paid to the price of bonds and the country risk, which could reflect the market’s perception of the viability of the reform.