Argentina president wants central bank penalized for financing treasury

The facade of Argentina’s Central Bank is pictured in the financial district of Buenos Aires, Argentina Dec 7, 2021. REUTERS/Agustin Marcarian/File photo

BUENOS AIRES  – Argentine President Javier Milei said on Thursday he will propose a bill to penalize the central bank from financing the nation’s treasury.

Milei, speaking in an interview with local news broadcaster TN, said he would look to stop the monetary authority from printing more bills in a bid to rein in inflation, which currently tops 200 percent annually.

The libertarian president, who took office in December with a promise of controlling the economy in a country facing spiraling poverty, said the International Monetary Fund (IMF) supports his policies.

IMF support

“The fund is very satisfied with what we’re doing,” Milei said following a meeting earlier in the day with Gita Gopinath, the fund’s first deputy managing director.

READ: Poverty in Argentina hits 20-year high at 57.4%, study says

Gopinath said in a statement that the Milei administration’s “initial actions are starting to bear fruit, although the path ahead remains challenging.”

The IMF recognized Argentina’s efforts to establish a strong fiscal anchor. In December, Argentina devalued the local peso currency by more than 50 percent against the U.S. dollar.

“Consistent and well-communicated monetary and (foreign-exchange) policy will be necessary to continue to bring down inflation durably, rebuild reserves, and strengthen credibility,” Gopinath said.