Argentina’s lower house has approved a central bank reform pushed by President Javier Milei. The libertarian leader wants to limit money printing to fight inflation. The bill passed 144 to 102 on Wednesday, August 26. It now goes to the Senate. Milei celebrated on X, calling it “a fundamental step to eradicate inflation.”
The reform strictly limits the central bank’s role. Its “primary and fundamental mission” is now to preserve the currency’s value. This reverses a 2012 reform under Cristina Kirchner. That reform had included employment and economic development in the mandate. The new bill also stops central bank lending to the Treasury and limits financing to provinces and municipalities.
Another key point is to “shield” the bank’s leaders. Removing the president or administrators now requires a two-thirds majority in both chambers. Milei, a follower of monetarist theory, says the new charter recognizes that inflation comes from excess money supply.
When Milei took power, annual inflation was 161 percent. It now stands at 33.8 percent. A deputy from Milei’s party blamed inflation on monetary issuance. He said Argentines have paid for politicians’ excesses and must set rules no government can break.
However, a Radical Civic Union deputy accused the government of using the reform for a “cultural battle.” A center-right opposition deputy warned that destroying industry and employment will require development-focused tools. He argued that politics comes before economics.
A former central bank president, who helped craft the 2012 reform, said Milei wants to impose his monetary vision on future governments. She said this would limit their ability to balance price stability with employment and growth. That is a risk for Argentina, which is sensitive to external shocks.
She also noted that Milei’s monetarist discourse contradicts government measures to curb prices. These include market interventions, wage controls, and increased imports.
Reference
Le Monde, “En Argentine, les députés approuvent une réforme de la banque centrale souhaitée par Javier Milei,” published August 28, 2026. https://www.lemonde.fr/economie/article/2026/08/28/en-argentine-la-rigueur-monetaire-au-c-ur-de-la-reforme-de-la-banque-centrale-approuvee-par-les-deputes_6758959_3234.html