Argentina's Central Bank Is Now Under the Treasury's Authority

The Central Bank of Argentina, led by Guido Sandleris, has made significant progress compared to previous administrations, but it remains far from independent of the Treasury. This lack of independence could have serious consequences for the country’s economy, especially in a context of high instability such as the current one.

In a recent analysis, President Alberto Fernández himself admitted that the Central Bank does not have the independence necessary to make autonomous decisions. This is due in part to the reserve purchase policy, which has been one of the main reasons for the Central Bank’s dependence on the Treasury.

We believe that this lack of independence can significantly affect monetary policy decision-making, which could lead to a loss of credibility for the Central Bank. This, in turn, could generate greater uncertainty in the market, which could have dire consequences for the country’s economy.

In this regard, it is essential that the Central Bank work toward increasing its independence and making decisions that are truly in the country’s best interest. This may include implementing more flexible monetary policies and reducing its dependence on the Treasury.

In short, while the Central Bank has made progress in terms of independence, there is still a long way to go. It is essential that it take concrete steps to increase its independence and maintain the country’s economic stability.