Milei announces Central Bank reform, vows to restore currency defense

Javier Milei, Argentina's president, unveiled a sweeping reform of the Central Bank's foundational charter, signaling a decisive break from the policies of previous governments. The proposal, which Milei presented during a national broadcast, aims to shift the institution's focus from economic development and social equity to the core task of defending the currency's value.

Milei, who campaigned on closing the Central Bank, has adopted a more pragmatic approach as president. He described the bank as an instrument that enabled "high politics" to "rob" the country, alleging an "illicit association" between the executive, legislative branches, and the bank's leadership to cover deficits through currency emission. The reform project is part of a broader package that includes fiscal austerity measures, capital market reforms, and insurance market changes.

The president dedicated significant personal effort to the announcement, practicing the speech for hours with his strategist, Santiago Caputo. The broadcast, filmed in the Casa Rosada's White Hall, featured key economic and political figures, including Economy Minister Luis Caputo, Deregulation Secretary Federico Sturzenegger, and Central Bank President Santiago Bausili. The staging, with economic officials to Milei's right and political allies to his left, underscored the administration's priorities and the project's significance. The strategic planning and elaborate presentation highlighted Milei's determination to enact these changes, framing them as a crucial step in reversing Argentina's perceived economic decline.