Argentina's Chamber of Deputies approved a simple majority for the reform of the Central Bank's organic charter on Wednesday [1].
This legislative victory marks a critical step in President Javier Milei's effort to curb inflation by fundamentally altering how the state manages its currency. By limiting the ability of the government to print money to cover deficits, the administration aims to stabilize the Argentine peso and prevent future currency collapses.
The governing coalition, supported by the PRO, UCR, and various provincial forces, secured the measure with 144 votes in favor [1]. Opposing deputies cast 102 votes against the reform, while nine members abstained [1]. Some reports indicated 129 deputies were present [2], though the total vote count suggests a higher attendance of 255 members [1].
The reform of the Banco Central de la República Argentina (BCRA) specifically prohibits the central bank from financing the national Treasury through the creation of new money [3]. The administration said the move is intended to strengthen the independence of the BCRA and preserve the value of the national currency [3].
Alongside the bank reform, the Chamber also granted a simple majority to the Inocencia Fiscal II project [4]. This proposal seeks to provide tax relief to specific sectors of the economy as part of the government's broader deregulation, and fiscal strategy [4].
Both measures now move toward the next stage of the legislative process. The Milei administration has framed these changes as essential to ending the cycle of hyperinflation that has plagued the country for decades [3]. The coalition's ability to maintain a working majority in the Chamber suggests a level of political consolidation for the president's economic agenda [2].
“The reform specifically prohibits the central bank from financing the national Treasury through the creation of new money.”
The approval of the BCRA reform represents a structural shift in Argentina's monetary policy, moving away from the practice of using the central bank as a primary funding source for government spending. If fully implemented, this would legally bind the state to a stricter fiscal discipline, potentially reducing inflation but also limiting the government's flexibility to respond to economic crises without external borrowing or tax increases.
