Argentine President Javier Milei has escalated his push to overhaul the Central Bank (BCRA) by linking the reform to an automatic government shutdown should the fiscal deficit persist.
In a televised address on Thursday, Milei detailed a legislative package that explicitly prohibits the central bank from financing the national Treasury or provincial governments, framing the measure as essential to preserving the country's economic recovery.
The proposal introduces a hard fiscal trigger: if the deficit is not eliminated, the government will cease operations.
This mechanism is designed to enforce fiscal discipline by removing the option of monetary financing, a practice that has historically fueled inflation in Argentina.
The reform represents a significant shift in the country's monetary framework, aiming to insulate the central bank from political pressure and fiscal needs.
Markets are likely to scrutinize the political feasibility of such a drastic measure.