The BCRA is a self-administered National Government entity subject to the provisions of its Charter and other related legal rules (Section 1, Law 24,144, as amended).
The purpose of the BCRA is to promote—within the framework of its powers and the policies set by the National Government—monetary and financial stability, employment, and economic development with social equality (Section 3, BCRA Charter). In addition, Section 4 of the Charter sets forth the following functions and powers of the BCRA:
– to regulate the operation of the financial system and enforce the Law on Financial Institutions and such regulations as may be consequently adopted;
– to regulate the amount of money and interest rates, and to regulate and steer lending;
– to serve as the financial agent for the National Government, and as depositary and agent for Argentina before international monetary, banking and financial institutions to which Argentina has endorsed, and to play an active role in international integration and cooperation;
– to hold and administer its gold and foreign exchange reserves, and other foreign assets;
– to contribute to the smooth functioning of the capital markets;
– to implement the foreign exchange policy in full accordance with the laws passed by the National Congress;
– to regulate, within its authority, all payment systems, clearing and settlement houses, money remittance entities, and cash-in-transit companies, and to carry out any other action related to the financial and foreign exchange industries; and
– to provide for the protection of financial services users’ rights and of fair competition, coordinating its actions with all relevant government agencies.
This section further establishes that, in carrying out its functions and powers, the BCRA shall neither be subject to any order, indication, or instruction from the National Executive, nor may it undertake any commitment conditioning, restricting or delegating such functions and powers without the express consent of the National Congress.
The National Government guarantees the commitments undertaken by the BCRA (Section 1, paragraph 2, BCRA Charter). The BCRA acts as a financial agent for the National Government (Section 18 c), BCRA Charter). In compliance with its purpose, powers and duties, and under the regulations in force, the BCRA performs various transactions with the National Government and holds assets and liabilities, including transactions on its behalf.
