Javier Milei’s government has declared war on the Kirchnerist legacy at the Central Bank. In a closed-door meeting with ruling party legislators, it was confirmed that the Executive is pushing a reform of the entity’s Charter, in effect since 1992 but revised in 2012 by Kirchnerism. The goal: to wipe out the changes that allegedly allowed uncontrolled monetary issuance and financing of the fiscal deficit.
The 2012 reform, pushed by then-BCRA President Mercedes Marcó del Pont, modified Article 3 of the law. Previously, the Central Bank’s primary function was to «preserve the value of the currency.» With the change, other objectives were added, such as financial stability, employment, and economic development with social equity. A multiple mandate that, according to critics, diluted the institution’s anti-inflationary role.
But the most explosive point was the modification of Article 20, which regulates temporary advances from the BCRA to the Treasury. Before 2012, the limit was 12% of the monetary base plus an additional 10% of the Government’s resources in the last year. The Kirchnerist reform allegedly added a third tranche of another 10% «on an exceptional basis» and eliminated the obligation to use those funds to pay debt to multilateral organizations. Thus, the Treasury could use the money for any spending, without control.
That scheme allegedly triggered the BCRA’s remunerated liabilities, as it issued its own securities to sterilize the funds transferred to the Treasury and prevent inflation from skyrocketing further. The result: a money-printing machine that fueled the fiscal deficit and price increases.
Milei, who during the campaign promised to «dynamite» the Central Bank, would now seek to cut the issuance capacity. The 2012 reform also established that the BCRA must act «within the framework of policies set by the National Government,» which reduced its independence. The current project would aim to restore the entity’s autonomy and limit its role as a state financier.
«What can we expect from someone from a Kirchnerist Central Bank?» Milei fired off during his presentation at the Faro Foundation, referring to Marcó del Pont. The President made it clear that his goal is to return to the pre-2012 Charter, before Kirchnerism turned the BCRA into a political tool.
The move sparks controversy. While ruling party members celebrate the end of uncontrolled issuance, the Kirchnerist opposition accuses Milei of wanting to adjust the economy at the expense of development. What is certain is that the project is already on the agenda and promises to be one of the hottest debates in Congress in the coming months.
Para mí esto huele a traición, Milei es un garca que quiere destruir el laburo de Marcó del Pont para cagarse en el pueblo. La reforma del 2012 bancó la producción, no fue emisión sin límites como mienten los gorilas. Vuelven al ajuste de siempre, patria o buitres carajo!
para mi milei es un capo le va a borrar la jeta a los kirchos chorros del bcra esos zurditos nos fundieron con la emision sin limites ahora a laburar no a imprimir plata para los amigos vamos argentina carajo 🚀