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Argentine President Javier Milei announced on Thursday his intention to introduce a bill aimed at penalizing the central bank for financing the nation’s treasury.
Speaking in an interview with local news broadcaster TN, Milei emphasized the need to halt the central bank’s practice of printing more currency as a measure to combat inflation, which currently stands at over 200% annually.
As a proponent of libertarian principles, Milei assumed office in December with a pledge to implement measures to address the economic challenges faced by a country grappling with increasing poverty levels. He asserted that his policies have garnered support from the International Monetary Fund (IMF).
According to Milei, the IMF has expressed satisfaction with the direction of Argentina’s economic policies. He made this statement following a meeting earlier in the day with Gita Gopinath, the IMF’s first deputy managing director.
In a statement, Gopinath acknowledged that the initial actions undertaken by the Milei administration are beginning to yield results, although she acknowledged that significant challenges lie ahead.
The IMF commended Argentina’s efforts to establish a robust fiscal framework. In December, Argentina implemented a substantial devaluation of the local peso currency, depreciating it by over 50% against the U.S. dollar.
Gopinath emphasized the importance of maintaining consistent and transparent monetary and foreign exchange policies to effectively address inflation, rebuild reserves, and bolster credibility.
The proposed bill to penalize central bank financing of the treasury underscores Milei’s commitment to implementing measures aimed at fostering economic stability and sustainable growth in Argentina.
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