A Historic Reform for Argentina's Economic Future
On July 30, 2026, President Javier Milei announced in a national broadcast the submission of a structural reform package to Congress – described as the most important in 91 years. The following day, July 31, 2026, the bill formally entered the Chamber of Deputies, aiming to transform Argentina's monetary and fiscal policy and open a hopeful path toward lasting stability.
Why Change the Central Bank? A Historical Context
Since the creation of the Banco Central de la República Argentina (BCRA) in 1935, cumulative inflation in Argentina has reached an astonishing 12,819,532,788,614,400,000 percent, according to the president. In the 21st century alone, the accumulation would be 168,580 percent. The proposed reform seeks to end the practice of printing money to finance public spending – a dynamic that has historically destroyed savings and wages.
The Six Pillars of the Central Bank Reform
As detailed by Infobae, the project contains six fundamental points to grant independence to the BCRA:
- 1. Single Mandate: The multiple objectives introduced by the 2012 Kirchner-era reform would be eliminated. The sole purpose would be to preserve the value of the currency, removing goals like employment or development that, according to the government, diluted accountability.
- 2. Institutional Protection: Removal of the board of directors would require a two-thirds majority in both chambers of Congress, only after proving gross misconduct. This aims to prevent politically motivated dismissals.
- 3. No More Treasury Financing: The bill explicitly prohibits granting loans or temporary advances to the national government, provinces, or municipalities, and bans the purchase of public securities on the primary market.
- 4. Real Profits Only: Only liquid and realized profits would be transferred to the Treasury. Accounting gains from devaluation would go into a non-distributable technical reserve, cutting off what is called the 'covert channel of fiscal dominance'.
- 5. Balance Sheet Cleanup: The bill mandates that annual results be used to cancel historical debts, such as non-transferable letters and pending temporary advances.
- 6. Operational Rules and Reserves: Operations with securities and foreign currency at market prices would be made more flexible, and international reserves would be guaranteed immunity from seizure.
The 'Fiscal Shackle': A Rule That Would Change the Game
Inspired by the U.S. government shutdown, the government proposes an automatic mechanism to enforce fiscal balance. According to an analysis by Chequeado, if a deficit is recorded for several consecutive months, Congress would have a few weeks to balance the books. If it fails, a partial state shutdown would be triggered.
During the activation of the 'fiscal shackle', no new personnel would be hired, no contracts would be awarded, and – most notably – the President, Vice President, ministers, and legislators would not receive their salaries. Essential areas such as pensions, health, security, and defense would be fully protected.
Expert Perspectives
The proposal has sparked a rich debate among specialists. In an interview with La Voz, economist Roberto Cachanosky praised the ban on money printing but warned that the board's protection could constrain the next government. He also questioned that in April 2026 the BCRA had transferred 24 trillion Argentine pesos in accounting profits. Meanwhile, consulting firm Epyca, cited by Chequeado, highlighted differences with the U.S. system: in the U.S., a shutdown occurs due to lack of budget approval, while the Argentine version would be triggered by the existence of an actual deficit.
Despite technical debates, the project represents a hopeful step toward building a predictable economy. As Deputy Santiago Santurio celebrated in La Nación, the initiative seeks to ensure that 'never again will a politician play Santa Claus with Argentines' money', restoring purchasing power to citizens and paving the way for a freer and more prosperous country.