Argentina: Javier Milei Remains Firm on 'Non-Negotiable' Stance To Close Central Bank

Argentina's President-elect, Javier Milei, affirmed on Friday that the closure of the country's central bank, a central campaign promise, is a "non-negotiable matter," according to Reuters.

This statement, released via social media platform X, was in response to what he referred to as "false rumors." Milei, an outsider libertarian economist, is currently assembling his team in preparation for assuming office on December 10.

Despite indications of a potentially more moderate Cabinet than anticipated, the closure of the central bank remains a firm commitment.

In a noteworthy shift from initial plans, economist Osvaldo Giordano, from the central Cordoba region, will lead Argentina's social security administration ANSES.

This decision is significant given Milei's commitment to reducing state spending and subsidies.

The announcement indicates a departure from the previous intention to appoint a close ally to head the administration.

Furthermore, Horacio Marin, a private executive in the energy sector, has been confirmed as the incoming chief of the state oil company YPF.

Argentina President-Elect Javier Milei's Economy Minister Remains Unknown

The statement from Argentina's President-elect, Javier Milei, follows a day of intense speculation about key appointments in his upcoming administration, per Buenos Aires Herald.

While Bloomberg reported that Luis Caputo would become the economy minister, sources from La Libertad Avanza (LLA) indicated no official confirmation.

Caputo previously served as Finance Secretary and president of the Central Bank during former President Mauricio Macri's administration.

There was uncertainty surrounding the leadership of the Central Bank, with reports suggesting that Emilio Ocampo, an advocate for dollarization, might not take the position due to the potential appointment of Caputo as the economy minister.

The Herald's sources close to Ocampo did not confirm his decision regarding the role.

Ocampo has been a prominent supporter of abolishing the peso, co-authoring a book titled "Dolarización: una solución para Argentina" ("Dollarization: a solution for Argentina").

This uncertainty appears to be causing some individuals close to the president-elect to distance themselves.

Carlos Rodríguez, previously mentioned by Milei as a top economic advisor, announced that he was ending all formal ties with LLA, expressing a desire to offer his opinions without political party associations.

In the official statement posted on an X account dedicated to sharing Milei's pre-inauguration decisions, two new ministers were confirmed.

Economist Osvaldo Giordano will lead the National Social Security Administration (ANSES), and engineer Horacio Martín will oversee YPF.

The appointment of Giordano sparked controversy as Milei had previously mentioned national deputy Carolina Píparo as the leader of ANSES.

Píparo announced a meeting with the current ANSES director, Fernanda Raverta, on Monday to discuss the transition.

Javier Milei Faces Problems

Javier Milei's ambitious reform agenda, encompassing plans to dollarize the economy, close the central bank, and privatize state-owned entities like YPF, faces considerable challenges, the Financial Times noted.

The realization of these proposals will demand substantial effort and adept political maneuvering.

Milei's libertarian coalition has a limited presence in Congress, and he lacks the support of provincial governors.

Furthermore, he must navigate the demands of the more mainstream conservative bloc, whose backing was pivotal in his recent election victory.

The path ahead for Argentina's President involves striking a delicate balance between his unwavering reformist principles and the complex realities of the country's political landscape.

Success will hinge on Milei's ability to build consensus and navigate the intricate web of political interests.

This article is owned by Latin Post.

Written by: Bert Hoover

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