03/07/2026 09:15 - Economia
The government of Argentine President Javier Milei is preparing to take a qualitative leap in its economic policy by reforming the Organic Charter of the Central Bank of Argentina (BCRA, for its acronym in Spanish). The main objective is to restrict or directly prohibit the printing of pesos (the local currency) to finance the fiscal deficit—when the government spends more money than it collects through taxes—a measure that promises to bring greater stability and predictability to the country.
The government's strategy would be inspired by Peru's successful model, which since 1993, during the presidency of Alberto Fujimori, established in its Constitution the prohibition of the Central Bank financing the public sector or establishing multiple exchange rate regimes, locally known in Argentina as the 'cepo' (capital controls that restrict citizens from buying foreign currency, like the US dollar). This scheme, in force for more than 30 years, has proven to be a fundamental pillar for monetary stability.
In 2012, under the management of Mercedes Marcó del Pont, 'Kirchnerism' (a populist political movement in Argentina led by Néstor and Cristina Fernández de Kirchner, known for heavy state intervention in the economy) modified the Organic Charter. They altered Article 3, which originally established the primary function as 'preserving the value of the currency,' to add objectives such as 'promoting monetary stability, financial stability, employment, and economic development with social equity.'
Under the framework in force since 2012, the BCRA can grant temporary advances to the Government up to the equivalent of 12% of the monetary base. Additionally, it can lend up to 10% of the cash resources from tax collection of the last 12 months, and another 10% in 'extraordinary' situations.
The official project will seek to reverse these powers to return to the primary objective of preserving the value of the currency. Furthermore, the Peruvian model also prohibits sectoral credits and allows the free circulation of the US dollar as a legal tender currency, an aspect that the Argentine government is also evaluating implementing.
Another point to consider is the transfer of the BCRA's profits to the National Treasury. This year, the Government received a transfer of $24.4 trillion Argentine pesos corresponding to the 2025 earnings. Although these transfers are a common practice, the new regulations could regulate them more rigorously to prevent any form of concealed financing to the State.
Source: Infobae
Alfredo S. Quiroga
