Thursday, November 30, 2023 by Ramon Tomey
Argentinian President-elect Javier Milei has reiterated that the shutdown of the Central Bank of the Argentine Republic (BCRA) is non-negotiable.
Milei’s office said in a statement posted on the X platform that the BCRA’s closure was a “non-negotiable matter.” The statement appeared to be a response to “false rumors,” Reuters said. Aside from the remarks about the central bank, the statement also confirmed several appointments in Milei’s cabinet.
Economist Osvaldo Giordano from the central Cordoba region will lead Argentina’s National Social Security Administration, a key institution that could come under fire given Milei’s pledge to slash state spending and subsidies. Meanwhile, private energy sector executive Horacio Marin was confirmed as the new chief of state oil company YPF.
Bloomberg reported in August about Milei’s plan to shut down the BCRA. He told the business news outlet that the central bank was “the worst garbage that exists on this Earth.”
“Central banks are divided in four categories,” Milei said at the time. “The bad ones like the Federal Reserve; the very bad ones, like the ones in Latin America; the horribly bad ones; and the BCRA.”
According to Bloomberg, Milei plans to appoint economist and close ally Emilio Ocampo to lead the BCRA and pave the way for its decommissioning. Ocampo, who serves as the president-elect’s informal adviser on Argentina’s dollarization program, will also help in negotiations with the International Monetary Fund (IMF). (Related: Move over USD: Argentina uses Chinese yuan to settle IMF debt.)
Milei told Bloomberg that he has no plans to ask the IMF – which has a $44 billion program with the South American nation – for more money. “A fiscal deficit is immoral. If you live continually with a fiscal deficit, you’re going to be insolvent.”
Spanish researcher and author Diego Vallarino expounded on Milei’s economic plan in an Oct. 4 article on Medium. He remarked that the president-elect’s government plan “focuses on economic opening and the elimination of social assistance,” and outlined 10 points related to it.
Part of Milei’s economic platform is the removal of the BCRA, and its replacement with a currency board that will handle the issuance of legal tender in the country. According to the president-elect, the BCRA is mainly responsible for Argentina’s inflation. He continued that eliminating the central bank is a must to stabilize the economy.
Downsizing the Argentinian cabinet to eight ministries is also part of the 10-point plan, as per Vallarino. Under this plan, the following ministries will remain:
Aside from this, Milei also plans to eliminate all chiefs of staff of all ministries, secretaries and directorates. He argued that these positions were created simply to place friends of the ruling politicians in government positions.
Head over to EconomicRiot.com for similar stories.
Watch this Newsmax report about Argentinian President-elect Javier Milei’s plan to downsize the government by abolishing several ministries.
This video is from the NewsClips channel on Brighteon.com.
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