¡Buenos días from Greenway Parks! This is the Rorshok Argentina Update from the 30th of November twenty twenty-three A quick summary of what's going down in Argentina.

It’s been only a few days since the election, and we’ve already seen appointments, changes, and resignations of the ministers and secretaries who will make up Javier Milei’s Cabinet. Out of all the names that came up, one in particular made waves across the ranks of La Libertad Avanza, the elected party. We’re talking about the potential appointment of Luis 'Toto' Caputo as Economy Minister, who has close ties with former president Mauricio Macri.

Caputo served during Macri’s twenty fifteen-twenty nineteen administration, initially as finance secretary and later as finance minister until twenty eighteen. That said, their relationship goes beyond professional ties, as he is the cousin of one of Macri’s closest friends. The reason why this matters is that the potential appointment of Caputo sheds light on Macri's influence on the incoming government. Plus, rumor has it that Patricia Bullrich, who was competing against Milei only weeks ago, could take over the Security Ministry — further emphasizing the influence that Together for Change, or Juntos por el Cambio, will have on Milei’s government.

But despite public backlash and his political history, which includes involvement in offshore companies revealed in the Paradise Papers, Caputo seems to be ready to give it another go. In a recent meeting with bankers, he shared insights into the government’s plans, indicating that currency controls won’t be immediately lifted after Milei takes office. Instead, the focus will be on achieving a fiscal surplus by twenty twenty-four.

This strategy aligns with other signs of moderation from Milei, who seems to be distancing himself from his more radical campaign promises. While some see this as a sell-out, Wall Steet welcomes the news. The financial markets responded positively to the move toward Macri’s team, with Argentina’s dollar bonds experiencing an extended rally.

Plus, an exchange-traded fund (ETF) tracking Argentine stocks experienced its most substantial weekly inflow in almost a decade, pulling in thirteen million dollars last week.

From Wall Street to Washington, Argentina’s president-elect traveled to the US to talk with key figures from Joe Biden’s administration. During the meeting at the White House, Milei discussed political and economic matters with the National Security Advisor, Biden’s senior advisor on Latin America, the Chief US Diplomat for the region and the US Ambassador to Argentina.

Milei aims to strengthen ties with the United States, diverging from connections with China and Russia.

He also met with Kristalina Georgieva, the head of the International Monetary Fund. During the meeting, he highlighted the economic challenges that Argentina is facing, and Georgieva expressed the IMF’s willingness to cooperate with the new government. Milei also revealed plans for extraordinary sessions in Congress during the summer recess to push forward a bill package containing numerous state reforms immediately after taking office.

Speaking of economic challenges, the blue dollar, which is the parallel exchange rate, surged by 125 pesos on the first workday post the presidential runoff. Even though it receded lightly, and it now stands at 945 pesos, it almost reached the historic 1,100 mark. This represents a 200% difference from the official rate, which stands at around 370 pesos.

On that note about the different exchange rates, the government increased the taxes on the credit card dollar, pushing it to around 950 pesos per dollar. This exchange rate applies to purchases made with Argentine credit or debit cards abroad, and factors in taxes like the income tax, personal assets and the PAIS tax, an emergency tax created in twenty nineteen that applies to certain foreign currency transactions. What changed is that the government added another twenty-five percent for personal assets. At the end of the day, all of these taxes exist to bring the official exchange rate closer to the parallel exchange rate without having to officially devaluate.

In other news, the Argentinian software company Globant has acquired a majority stake in the creative agency GUT, expanding its focus on marketing services as a key growth driver. The move is part of Globant’s broader plan to invest one billion dollars in Latin America over the next five years to build out artificial intelligence operations and hire 20,000 employees.

Moving on, the country welcomed the release of ten Argentine-Israeli women who were being held hostage by the Hamas terrorist group. This followed the ceasefire agreement Israel and Hamas made a few days ago. However, fifteen Argentines might still be in the hands of Hamas.

Another topic that made the headlines this week is the future of the current president. According to the presidential spokesperson, Alberto Fernández will move to Spain after his presidency ends on the 10th of December. Fernández, who had previously hinted at potential teaching positions in Spain, emphasized the importance of taking distance from the presidency to allow the new administration to work without constant interference. However, his statement was put into question as he might be copping out.

Speaking of Spain, football icon Lionel Messi is putting up six jerseys he wore during the twenty twenty-two Qatar World Cup for auction in a joint effort with Barcelona’s Sant Joan de Déu Children’s Hospital. The auction includes the jersey he wore during the final, and a portion of the proceeds will support the UNICAS Project, which helps children with rare diseases. The collection is estimated to be worth around ten million dollars and will be displayed at Sotheby’s New York during the auction period, from the 30th of November until the 14th of December.

If paying ten million dollars for a jersey sounds bananas to you, wait until you hear what happened in the Salta province. Griselda Galleguillos, a newly-elected legislator, wore a wedding-style white dress and a wedding ring in the recent swearing-in ceremony. She then stated: “I’m marrying the people” and shared an anecdote about a supporter who encouraged her to wear a wedding ring when becoming a legislator.

Galleguillos, who is close to La Libertad Avanza, has been controversial before, mainly for things such as doing parody videos and promoting a show of strippers on International Women’s Day.

Local elections always set the scene for random things to happen, and so is the case of the seaside town of Pinamar in the Province of Buenos Aires. Juan Ibarguren, the candidate from Juntos por el Cambio, secured the mayoral position by just one vote over his rival from Union for the Homeland or Unión por la Patria.

Back to the topic of bananas, you may have noticed they were hard to come by in stores across the country over the last few days. That is because bananas are, for the most part, imported, and Paraguay had to put their exports on hold due to late payments from Argentine importers. Fortunately, the situation has been resolved and Paraguay and Bolivia are set to resume shipments to Argentina as the government authorized the use of foreign currency for imports.

Regardless of this setback, Argentina’s gastronomic scene is as vibrant as ever. In fact, the MICHELIN Guide published a… well, guide on the best places to eat in Buenos Aires and Mendoza. The article highlights the notable restaurants that have received Michelin Stars, Green Stars for sustainable practices, Bib Gourmand distinctions for good value, and other special awards. To check it out, follow the link in the show notes.

Similarly, The Scotsman newspaper published a piece titled Fine wines, folklore and superb scenery make Argentina’s Puna Desert a wild road trip. The article describes a journey through northwest Argentina, specifically the Catamarca province. The adventure includes a visit to the Campo de Piedra Pómez Nature Reserve, known for its surreal landscape of pumice stone sculptures, salt flats, various colorful lagoons, shifting sands and, of course, wineries. Link in the show notes!

Aaaand that’s it for this week. Remember you can buy one of our really cool and environmentally friendly T-shirts! They are made of 100% unbleached organic cotton, grown and ginned in Texas, spun and knit in the Carolinas, and sewn and printed in Missouri. To buy one, follow the link in our show notes.

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¡Nos vemos la próxima semana!