Argentine policy group backs Central Bank reform but wants more congressional oversight

Fundar, an organization focused on public policy, has endorsed the core of President Javier Milei's proposed reform for Argentina's Central Bank (BCRA). While celebrating the abandonment of the initial idea to close the bank, Fundar insists on the need for stronger congressional oversight.

The reform, presented by Milei after he promised to "dynamite" the BCRA during his campaign, aims to establish a strong and independent monetary authority. Key proposals include making currency value and inflation control the bank's sole objective, prohibiting the issuance of money to finance the state, and increasing the independence of authorities by making their removal more difficult. Additionally, the reform seeks to prevent accounting profits from being used for public spending and to eliminate mechanisms that previously allowed the Treasury to finance itself with the bank's resources.

Fundar views these changes as a step in the right direction, aligning with international best practices. The organization specifically commends the clearer mandate, limits on monetary financing of the Treasury, and enhanced independence from the executive branch. However, Fundar stresses that the reform's success hinges on its institutional design, emphasizing that autonomy must be paired with robust accountability and control mechanisms.

Despite Fundar's support for the reform's direction, the article notes that the President of the Chamber of Deputies, Martín Menem, and the Chief of Staff, Diego Santilli, are pushing to advance the reform in the Chamber of Deputies this week. Fundar's report highlights that the mission of preserving currency value is a sound one for the BCRA.