Milei Announces Law to Bar Argentina’s Central Bank From Financing the State

Overview

• The package, announced Thursday in a national address, rewrites the Central Bank’s charter to make preserving the peso its sole mandate and to ban any form of monetary financing for the national government, provinces and municipalities.
• The proposal raises the bar to remove the BCRA president and board by requiring a two‑thirds vote in both chambers of Congress to protect monetary authorities from political pressure.
• A companion permanent fiscal rule called the 'grilheta' would automatically freeze nonessential state activity, halt new hires and suspend salaries of top officials if deficits continue over a set period.
• The Casa Rosada says the plan was discussed with the IMF and labeled a presidential legislative priority to be sent to Congress in the coming weeks, but it still needs congressional approval to take effect.
• Opponents including state unions have criticized the measures and analysts warn implementation risks—legal challenges, political pushback and Argentina’s low reserves—could limit the reforms’ practical impact even if the law is approved.