DistantNews
Support us
Redrado proposes Central Bank reform changes, recalls Kirchner clash
🇦🇷 Argentina /Economy & Trade

Redrado proposes Central Bank reform changes, recalls Kirchner clash

From La Nación · () Spanish

Translated from Spanish, summarized and contextualized by DistantNews.

At a glance

News Sources not specified New plan
  • Economist Martín Redrado proposed modifications to Argentina's Central Bank reform bill.
  • He supports limiting the bank's functions to preserving currency value and prohibiting Treasury financing.
  • Redrado also recalled his past conflict with former President Cristina Kirchner over the use of central bank reserves.

Economist Martín Redrado has put forward several amendments to the Argentine government's proposed reform of the Central Bank's charter. While backing President Javier Milei's initiative, Redrado suggested changes concerning bank reserve requirements and financial stability.

The dollars are not yours or mine.

— Martín RedradoRecalling his last conversation with former President Cristina Kirchner regarding the use of Central Bank reserves.

Redrado, who led the Central Bank from 2004 to 2010, emphasized that the reform should be a long-term policy. He believes the current draft needs adjustments to prevent politicians from accessing monetary emission funds. "The difference is taking away the 'dulce de leche' from politicians, which is having their hands on monetary emission and, ultimately, taking dollars from the people," he stated.

The difference is taking away the 'dulce de leche' from politicians, which is having their hands on monetary emission and, ultimately, taking dollars from the people.

— Martín RedradoExplaining his view on the need to restrict political access to monetary emission.

He specifically recommended that the reform should prevent bank reserves from being constituted with public securities, a point he feels was omitted from the current bill. Redrado also stressed the importance of maintaining financial stability as a core objective of the Central Bank, alongside preserving the currency's value. He cited both domestic history and international crises as reasons for this focus, aiming to reassure citizens about the safety of their deposits and the availability of credit.

The Central Bank must preserve the value of the currency and financial stability. Not only because of what has happened in our country, but also because of international crises.

— Martín RedradoStressing the dual mandate of the Central Bank.

During an interview, Redrado also reflected on his final meeting with former President Cristina Kirchner in early 2010. The conflict arose from a dispute over using Central Bank reserves to pay public debt. He recalled telling Kirchner, "The dollars are not yours or mine," regarding the reserves.

It is important that we are all calm and know that there is someone monitoring that our deposits are safe and that there is more credit.

— Martín RedradoExplaining the importance of financial stability for public confidence.
DistantNews Editorial

Originally published by La Nación in Spanish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

More Stories

From Our Blog