NOTE:

On August 27, 2003, through Law 25.780, Congress reformed the Financial Institutions Act as well as the BCRA Law. On September 5, by Executive Order 738/03, the National Executive Branch partially enacted the BCRA Law.

Amendments thus enacted are in force.

In due time, the current BCRA Law text will be replaced by the final text to be enacted by the National Executive Branch.
 

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The Argentine Central Bank is a National State self-governed institution, whose primary and fundamental mission is to preserve the value of the Argentine currency.

When formulating and implementing the monetary and financial policy, it is not subject to the orders, guidelines or instructions of the National Executive branch of government.

In order to fulfill its mission, it is empowered to regulate the amount of money and credit in the economy and to issue monetary, financial and foreign exchange regulations pursuant to legislation in force.

The Central Bank’s role consists in monitoring the appropriate operation of the financial market and implementing the Law on Financial Institutions and other regulations; acting as the National Government financial agent; concentrating and managing its reserves in gold, foreign currencies and other foreign assets, and promoting the development and strengthening of the capital market and implementing the foreign exchange policy.

For the purposes of monetary and foreign exchange regulation, it may purchase and sell notes, foreign currency and other financial assets in the spot and forward markets.  It may also issue notes or bonds as well as shares in its own assets. 

Before the beginning of each fiscal year it must disclose its monetary program that includes the inflation target and the total money variation projected.  On a quarterly basis or every time there is a diversion, it must disclose the reasons and the new program.

The Central Bank is governed by a Board of Governors made up of a Governor, a Deputy Governor and eight directors, who must have proven their skills in monetary, banking or legal matters in the financial arena.

Board members are appointed by the National Executive branch of government with the agreement of the Senate.  Their terms of office last six years and are renewed in halves every three years.  The Governor and Deputy Governor positions are renewed simultaneously.  Board members may be appointed again indefinitely.

It supervises the financial and foreign exchange activity by means of the Superintendency of Foreign Exchange and Financial Institutions, which reports directly to the Central Bank Governor.  The Superintendency is chaired by one of the Directors who is widely empowered to make decisions.