Argentina’s Milei says shutting central bank a ‘non-negotiable matter’

Argentine president-elect Javier Milei faces major hurdles to implement his more radical reform plans, which include US dollarizing the economy, shutting the central bank and privatising state entities. PHOTO: REUTERS

Published Fri, Nov 24, 2023 · 10:50 PM

ARGENTINA’S President-elect Javier Milei said on Friday (Nov 24) that the closure of the country’s central bank, a signature campaign pledge, was a “non-negotiable matter”, according to a statement from his office posted on social media platform X.

The comments, in response to what he called “false rumours”, come as the outsider libertarian economist races to put together his team ahead of taking office on Dec 10, with some signs that he is picking a more moderate Cabinet that expected.

Argentina’s social security administration ANSES, a key institution given Milei’s pledge to slash state spending and subsidies, will be lead by economist Osvaldo Giordano from the key central Cordoba region, the statement added.

That marks a shift from a previous plan that Milei would appoint a close ally to lead the administration.

Horacio Marin, a private energy sector executive, was also confirmed as the incoming chief of state oil company YPF.

Milei faces major hurdles to implement his more radical reform plans, which include US dollarizing the economy, shutting the central bank and privatising state companies like YPF, which will take time if they can be done at all.

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Attention will now turn to how Javier Milei implements his most contested measures with only a handful of representatives in a fragmented congress and an impatient electorate, with more than 40 per cent of Argentines below the poverty line.

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The agreement with China has helped Argentina increase its depleted foreign currency reserves as it undergoes a major economic crisis.

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His libertarian coalition has a limited number of seats in Congress and no provincial governors. Milei also has to juggle demands from the more mainstream conservative bloc, whose public backing was key to him winning the run-off election last week. REUTERS

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