Eliminating central bank ‘non-negotiable’ says new Argentine president

Closing down the monetary regulator is part of the president-elect’s radical reform plans.

Argentina’s incoming president Javier Milei confirmed on Friday that he will keep his promise to shut the nation’s central bank. The statement was posted by his office on X (formerly Twitter).

The shutdown was Milei’s signature campaign pledge along with “shock therapy” to fix Argentina’s beleaguered finances that includes dollarizing the economy, privatizing state-owned media outlets and other public companies including energy firm YPF.

The statement reportedly came in response to what Milei has called “false rumors” that he had eased off on his plans, with some people claiming he was picking a more moderate Cabinet than expected.

Milei, who will take office on December 10, predicted it would take him “between 18 and 24 months” to decrease inflation, which is nearing 150%.

Some economists have raised concerns that Milei’s “shock therapy sets Argentina on a path of deep uncertainty.” Experts suggested that dollarizing the $622 billion economy at a time of depleted international reserves could plunge the South American nation into another spell of hyperinflation.

Image credit: Nestor Barbitta