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

BUENOS AIRES (Reuters): Argentina’s President-elect Javier Milei said on Friday 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 led 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 dollarizing the economy, shutting the central bank and privatizing state companies like YPF, which will take time if they can be done at all.

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.

INTERNATIONAL MONETARY FUND

Milei said on Friday he had spoken with the director of the International Monetary Fund (IMF), Kristalina Georgieva, regarding plans to adjust the country’s fiscal policy and monetary programme.

“The Fund showed itself to be collaborative in looking to find the structural solutions Argentina needs,” Milei said on social media network X.

Georgieva later said the two discussed the “significant challenges ahead” for Argentina’s economy and the “decisive” policy actions needed.

The country is currently facing inflation nearing 150 per cent, a looming recession and net reserves seen at negative $10 billion. Argentina is tied up by a $44 billion loan programme from the IMF that has veered off track.

“The IMF is committed to support efforts to durably reduce inflation, improve public finances and raise private-sector-led growth,” Georgieva said on X.