¡Buenos días from BA! This is the Rorshok Argentina Update from the 10th of July twenty twenty-five. A quick summary of what's going down in Argentina.

Wednesday the 9th marked Independence Day in Argentina, and a bad day for President Milei. He had to call off his trip to the northern Tucumán province, where a ceremony for Argentina’s Independence Day was supposed to take place, and blamed the bad weather in Buenos Aires as the reason. However, only a handful of officials had confirmed attendance, while twenty-one provincial governors refused to attend. Milei accused them of trying to sabotage his administration and said that provinces are flush with funds yet still undermine the federal government, driven more by personal power than the well-being of Argentines.

Just one day earlier, Milei’s legislative powers expired. As you may recall, Congress granted them for one year when it passed the Ley Bases in June twenty twenty-four, which gave him temporary authority to make decisions without needing congressional approval on issues related to the economy, administration, energy, and public finances.

That emergency period officially ended on Tuesday the 8th, so he decided to make the most of the last couple of days with a wave of decrees to fast-track cuts and changes to dozens of state institutions. He dissolved key road safety and highway authorities, scaled down the National Cancer Institute, and downgraded tech and farming research centers like INTI and INTA. He also merged gas and electricity regulators into one agency following recent energy shortages.

Some of the most controversial changes affected human rights institutions: he stripped autonomy from the ex-ESMA museum, the National Memory Archive, and the National Genetic Database, which helps identify children stolen during the dictatorship. This move sparked outrage from groups like the Grandmothers of Plaza de Mayo, who accused the government of putting vital genetic records at risk.

On this topic, The Guardian published an article about how the government’s budget cuts are gutting Argentina’s public science sector, leaving many top researchers scrambling to make ends meet. Once fully devoted to cancer treatments, crop yields, or environmental studies, scientists are now moonlighting as Uber drivers, electricians, and teachers. While the government thinks science should prove its value in the free market, researchers argue that public science is essential, collaborative, and irreplaceable.

To read the full article, follow the link in the show notes.

Similarly, Bloomberg shared a piece about Milei’s strong approval ratings despite rising public anxiety over jobs. A recent poll showed that unemployment, now at its highest level in over three years, has overtaken inflation as Argentines’ top concern.

Speaking of inflation, in June, it ticked up to 2.1% in Buenos Aires, driven mainly by higher costs in housing, transportation, and financial services. That’s a slight increase from May’s 1.6% and reflects rising utility bills, rent adjustments, fuel prices, and public transport fares. Food also got pricier, especially baked goods and meat, though falling vegetable prices helped ease the overall increase.

Health, alcohol, and entertainment costs all went up around between 2.5 and 3%, while clothing prices barely moved. So far this year, prices in the city have climbed 15%, and year-on-year inflation sits at 44%. Analysts expect this local figure to hint at the national inflation rate, which will be released soon.

Meanwhile, the peso slipped this week after Luis Caputo, the Economy Minister, sarcastically challenged critics to buy dollars if they truly believed the exchange rate was too low. He made the comment at a business summit, and the dollar jumped to 1,260 pesos, its highest since currency controls were lifted in April.

A consulting firm noted a surge in farm export dollars flowing in, though, so now the government must decide whether to stockpile reserves or keep trying to strengthen the peso as election season approaches.

But hey, who knows which currency will be in circulation next? Ricardo López Murphy, a congressman, just introduced a bill to swap out the peso for a brand-new currency called the Argentum, where one Argentum would equal 1,000 pesos—basically lopping off three zeros to make prices and accounting simpler. He says it would streamline daily transactions and budgeting, though the proposal probably won’t go anywhere.

The idea takes a page from Argentina’s nineteen nineties playbook, when the country replaced the austral with the peso and pegged it to the US dollar. That strategy helped short-term but eventually led to the two thousand one economic meltdown.

On that note about dollars, the Banco Macro bank just scraped all fees on dollar transfers from abroad—up to 10,000 dollars—making life a lot easier for freelancers, remote workers, and anyone getting financial help from overseas. Starting this week, anyone who picks Banco Macro to receive international wire transfers in USD keeps every cent, with no surprise deductions.

The move lines up with the government’s new savings repatriation plan, which lets people use their dollars freely. Macro also lets clients invest those funds in foreign currency time deposits.

Also of interest for expats: an article by Business Insider shares the story of Greyson Ferguson, an American who moved to Argentina in twenty twenty-two to escape the high cost of living in the US and pay off his student loans.

The article touches on how the move gave him the financial break he needed at first but explains how the rising costs after the twenty twenty-three election changed things.

Check it out with the link in the show notes!

From the twenty twenty-three elections to the Buenos Aires Province local elections in September twenty twenty-five, the PRO party decided to team up with President Milei’s La Libertad Avanza party. After a tough loss in the May city elections, PRO agreed to run under LLA’s name and purple colors, aiming to challenge Governor Axel Kicillof’s Peronist government. While the LLA leads the coalition and controls the ballot branding, PRO still holds significant influence thanks to its strong base of provincial mayors, who will negotiate for top spots on the ticket.

In other news, the winter break is right around the corner, with dates varying depending on the province. If you have any trips planned, keep in mind that air traffic controllers will have a series of work stoppages throughout July. The planned strikes will affect flight departures but not arrivals, with the first round kicking off on the 11th of July.

On that note about departures, Carrefour is looking to exit Argentina. The French retail giant has started selling off assets and hopes to either sell the business entirely or bring in a partner to share the risk and stick around a bit longer. Possible buyers include the owners of Havanna and investors with an eye on Carrefour’s real estate rather than its retail business. The company runs 600 stores across twenty-two provinces.

Big names like Walmart, HSBC, Exxon, and Danone have packed up in recent months, all citing the same issues: low profits, inflation, restrictions, and red tape.

While some major companies are packing their bags, others are doubling down on Argentina’s cultural scene. Case in point: Luna Park, one of Buenos Aires’ most iconic venues, is about to get a massive makeover. Local promoter DF Entertainment and global giant Live Nation teamed up to take over management and lead the transformation, aiming to reopen by late twenty twenty-seven—just in time for the stadium’s 100th anniversary.

They plan to pour around thirty-four million dollars into modernizing the space while keeping its historic façade intact. The revamped venue will host over 150 events a year, from concerts to sports and live shows, and will compete with other top spots like the Movistar Arena.

Lastly on culture, the Buenos Aires Publishers’ Fair is coming back with over 330 publishing houses from Argentina, the rest of Latin America, and Spain. From the 7th of August to the 10th, visitors can check out talks, new releases, and a wide range of books, from fiction to graphic novels and kids’ lit, plus events like the Booksellers’ Prize. Despite a tough year for publishers, with book sales down across the board, organizers hope for a bounce back. Entry is free, and the venue is C Art Media in the Chacarita neighborhood.

Aaand that’s it for this week! Thank you for joining us!

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¡Nos vemos la próxima semana!