Argentina President-elect says Central Bank abolition ‘non-negotiable’

Argentine President-elect says Central Bank abolition ‘non-negotiable’
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Argentina’s newly elected President, Javier Milei, remains adamant that he will shut down the country’s Central Bank, according to an apparent government communication shared on X.

The communique was published in response to ‘false rumours that have been spread’ suggesting that the closure of the Central Bank of Argentina (BCRA), one of Milei’s flagship policies, could be dropped.

In the statement, the new administration asserted that ‘the BCRA’s closing is non-negotiable’. It can be assumed then that Milei is also committed to his plans to replace the Argentine peso with the US dollar as its main currency.

The politician and economist, widely regarded as a right-wing libertarian, was declared the winner of Argentina’s presidential election two weeks ago, after polls had been closed since 22 October.

He has caught headlines around the world for holding a range of populist and anti-establishment opinions, many of which are focused on the financial order – such as A passion for Bitcoin and a strong dislike for the Central Bank.

Although he may have won the presidency – and due to commence his term on 10 December – Milei’s political party, La Libertad Avanza, only has a limited number of seats in Argentina’s legislature.

The self-proclaimed anarcho-capitalist may therefore face some difficulty in implementing his radical fiscal agenda, the main objective of which is a reduction in what Milei has called ‘hyperinflation’ hampering the Argentine economy.

Milei’s operation to the central bank – which he has labelled a ‘scam’ – forms part of a wider agenda of decentralisation and a desire to cut back the state. A defining feature of this mandate is also the support for cryptocurrency.

He believes control over Bitcoin should be handed over to the private sector as opposed to the state or the central bank. In the immediate aftermath of his election, this favourable viewpoint had a positive impact on Bitcoin’s price which rose 3%.

Milei is seemingly committed to his policies of making a ‘shock adjustment’ to Argentina’s economy, but as noted above, will likely have some political negotiations with legislators ahead of him if his financial policies are to be fully rolled out over the next four years.