The discussions to change the charter of the BCRA start today

Argentina, March 6, 2012

Tomorrow, the president of the Central Bank of Argentina (BCRA), Mercedes Marco del Pont, will defend in the Congress the law that will seek to change the charter of the bank. According to official sources, the goal is “to prevent abuses in a context of competition” and “meet the “triple mandate” issued by President Cristina Kirchner”. 

The call is for tomorrow at 11 am in the annexed building of the National Congress, to discuss it first on the commissions.

Thus, it will begin the parliamentary year, with the presence of Del Pont in the plenary commissions of Finance, Budget and General Legislation.

The “triple mandate” that Cristina Kirchner issued means to include “the preservation of the value of the currency, financial stability and economic development with social equity” replacing the former role of the BCRA, which regulated that “the money supply should be supported in the “exchange board”, “, ie, with the same amount of dollars in the bank.

The committees are chaired by members of the ruling bloc: Heller in Finances, Feletti in Budget and Finances and Cigogna on General Legislation.

We must also recall the change included in the point h of Article 4 of the draft submitted by the Casa Rosada, which entrusts the task of “providing protection of the rights of users of financial services in loyal competition”.

Some critics from the opposition 

The criticism from some sectors of the opposition argue that this is a tool to remove the restriction that the Central Bank has to inject money into the economy, which resides in the dollar amount that it has on its exchange board. Removed the restriction, the agency may issue without limits, but taking care of the value of the currency.

However, Cristina Kirchner announced on his Facebook account that “the BCRA will depend on the real economy, it won’t make mistakes”.