02/07/2026 21:05 - Politica
President Javier Milei announced a key initiative for his administration: modifying the charter of the Central Bank of the Argentine Republic (BCRA). The project, developed alongside Ministers Luis Caputo (Economy) and Federico Sturzenegger (Deregulation), and BCRA President Santiago Bausili, aims to definitively end the financing of fiscal deficits through money printing.
The government seeks to repeal the 2012 reform, promoted during Cristina Kirchner's administration, which expanded the BCRA's objectives to five simultaneous goals. Milei proposes returning to the single mandate that governed between 1992 and 2012: making the preservation of the currency's value the primary and fundamental mission of the Central Bank.
In an extensive message titled 'End of Monetary Brutality', Milei invoked the Tinbergen principle, a classic economic rule stating that achieving a policy objective requires at least one independent instrument. By assigning five objectives to monetary policy (monetary and financial stability, employment, and economic development with social equity), the 2012 reform was described by the president as a declaration of ignorance.
Concrete changes being analyzed by the ruling party include:
If we want to end inflation forever, annihilating the 2012 reform by returning to a feasible objective will be a great step in the right direction, the President concluded.
Alongside the economic reform, the ruling party is advancing a political reform looking ahead to the 2027 elections. According to local news outlet Letra P, the government started negotiations with PRO and UCR (two major opposition parties) to offer them their own legislative lists competing under Milei's presidential ticket.
This scheme, similar to a multiple-list system, would allow a presidential candidate to sponsor up to three legislative proposals. It would be particularly useful in large districts like Buenos Aires, where 35 deputies are elected. For the Senate, where three seats are contested, local political leaders would be expected to assemble the lists.
These announcements occur within a framework of national cabinet reconfiguration. On June 30, 2026, Diego Santilli assumed the role of Chief of Cabinet of Ministers, replacing Manuel Adorni, who resigned on June 27 following a patrimonial scandal. The new political stage also includes debates on expanding the fiscal innocence system, though its discussion might be delayed to avoid referencing Adorni's situation.
In a positive economic panorama that the government seeks to consolidate, BCRA reserves reached USD 47,081 million, after accumulating purchases of USD 11,000 million in 2026. Furthermore, the country recorded a trade surplus of USD 11,783 million between January and May.
Sources: TN, Letra P.
Alfredo S. Quiroga
