Finance: Javier Milei Determined to Close the Central Bank!

During his campaign for the presidential election in Argentina, Javier Milei had promised that once elected, he would work to eliminate the country’s central bank. Now that this has been done, rumors are surfacing about this financial project. Some claim it was only an election campaign promise that the new occupant of the Casa Rosada does not intend to honor. Javier Milei, who plans to straighten out the country’s public finances, has formally denied these allegations.

The elimination of the Argentine central bank, a non-negotiable project

Javier Milei remains faithful to his campaign promise regarding the closure of the country’s central bank. In a recent statement shared on X (formerly Twitter), the Argentine president-elect has insisted that this financial decision is a “non-negotiable issue.”

The leader intervenes to dispel the “false rumors” that have circulated in recent days, questioning the effective realization of this campaign promise. This intervention comes as he forms his government team.

According to analysts, some of the recent appointments made in this context suggest that Javier Milei may soften his financial policy. This is the case with the designation of economist Osvaldo Giordano at the head of Argentina’s social security administration (ANSES).

This choice suggests a shift from Javier Milei’s radical policy to a slightly more moderate stance. The same goes for the appointment of Horacio Marin as the head of the nationalized oil company YPF in 2012. In any case, the implementation of this policy aimed at straightening out Argentina’s public finances will not be easy.

Argentina's Milei says shutting central bank 'non-negotiable'#BTC pic.twitter.com/2Vee8lwlWY

— Professor Ruby (@CryptoProfRuby) November 24, 2023

A measure whose implementation is not guaranteed!

Like the dollarization of the Argentine economy, some experts believe that the elimination of the central bank is a financially uncertain option or even difficult to implement. This is due, in particular, to the presence of significant political challenges.

Among these challenges is the limited presence of Javier Milei’s libertarian coalition in Congress and the absence of provincial governors. There’s also the need for the president-elect to navigate and respond to the demands of the dominant conservative bloc.

This adds an extra level of complexity to the realization of the new Argentine president’s financial choice. Especially when we know that the public support of this bloc played a crucial role in the victory, in the recent second round of the elections. The balance of the libertarian coalition’s aspirations with those of the conservatives requires the president-elect to perform skillful political maneuvers. As the new leader takes office in December, his ability to translate his campaign rhetoric into a feasible financial approach will be closely monitored. Notably by the crypto community which should realize that, contrary to appearances, Javier Milei is not as pro-bitcoin as he claims to be.