Milei to Announce BCRA Reform to Prohibit Unbacked Issuance

The President of Argentina, Javier Milei, will announce on July 30, 2026, the reform of the Organic Charter of the Central Bank of the Argentine Republic (BCRA) via national broadcast. The project aims to redefine the role of the monetary authority, establishing as its exclusive mission the preservation of the currency's value, arguing that inflation is a result of excessive monetary issuance. After its presentation, the text will be sent to Congress for parliamentary debate. The reform includes five main changes: a new objective for the BCRA focused on preserving the currency's value; a prohibition on financing the State; greater stability for authorities, requiring a two-thirds vote for their removal; changes in the use of profits with limits on dividend distribution; and the end of non-transferable letters, with penalties for those who violate the autonomy of the agency. The text was developed alongside the Minister of Economy, Luis Caputo, and other officials. Although Milei had proposed closing the Central Bank during his campaign, this goal has evolved into the current reform. The project is expected to enter Congress in August, following the winter recess.