¡Buenos días from BA! This is the Rorshok Argentina Update from the 7th of August twenty twenty-five. A quick summary of what's going down in Argentina.

Since Sunday the 27th, everyone has been glued to a YouTube livestream from the Schmidt Ocean Institute that’s leading a groundbreaking expedition to explore the deep-sea canyon off the coast of Mar del Plata, in Argentina’s Atlantic coast. A team of Argentine scientists is using a high-tech underwater robot, SuBastian, aboard the research vessel, Falkor, to document deep-sea ecosystems, collect samples, and even livestream the dives on YouTube.

The broadcasts have captivated thousands, showcasing rare species and even newly discovered ones. Viewers have given playful nicknames to the animals, like calling a starfish estrella culona or big-butt starfish because it looks amusingly like Patrick Star from SpongeBob, dubbing a snail-like mollusk Gary, and naming a crab Drag Queen.

The mission has sparked pride in Argentina’s scientific talent and drawn attention to the country’s shrinking science budgets under the current administration’s austerity plan.

Above the surface, things are not going as great as the official exchange rate hit a record high of 1,380 pesos per US dollar on Friday the 1st after a sharp fifty-five-peso jump in just one day, fueled by market uncertainty, pre-election jitters, and excess pesos from recent bond activity. Investors rushed to buy dollars after the government refinanced only part of its peso debt and let a key bond expire.

The Central Bank stuck to its plan not to intervene unless the dollar drops to 1,000 pesos, even as future contracts predict it could hit 1,528 by year’s end—above the upper limit of the official currency band. Experts pointed to a mix of factors behind the spike, from exporters holding back sales to end-of-month shifts in investor strategy, all of which pushed demand higher.

While the peso continues to slide and pressure mounts in the markets, Milei is doubling down on his austerity agenda by targeting pensions. On Monday the 4th, he blocked another pension hike passed by Congress, saying it would derail his push for a balanced budget. This marks the second time he’s rejected pension increases since taking office, and he also scrapped a temporary benefit for people who hadn’t contributed the required thirty years to the system.

Milei’s administration insists the pension boost was financially reckless, estimating it would cost the government US$5 million this year. Meanwhile, retirees struggle to cover even basic expenses. Congress could override the veto with a two-thirds majority, though that remains uncertain.

As Milei tightens the belt on public spending, he’s rolling out a very different kind of policy for foreigners with money to spend. The government has officially launched an investment-based citizenship program, giving foreign nationals a fast track to Argentine citizenship if they make a significant investment in the country. While the government hasn’t set a minimum amount, the Economy Ministry will decide which investments qualify and can also create special projects to attract foreign money. Unlike the standard two-year residency requirement, investors can apply regardless of how long they’ve lived in Argentina.

Applicants must go through a newly created agency under the Economy Ministry, which will vet the investment and the individual with help from various state bodies, including intelligence and security services. If approved, the investor gets citizenship and a tax ID, opening the door to economic activity in Argentina.

On the trade front, US President Donald Trump confirmed that Argentina will keep its 10% tariff rate under the US’s updated import policy, holding steady from the rate set back in April. While the executive order hiked duties for other countries, Argentina avoided further increases, likely thanks to its ongoing diplomatic efforts and Milei’s warmer relationship with Trump. Officials on both sides remain optimistic about a future deal that could lift the tariffs altogether.

The news landed on the same day that the International Monetary Fund, or IMF, eased Argentina’s reserve requirements for twenty twenty-five, lowering the target by five billion dollars to help the government stay on track with its twenty billion dollar funding deal.

Argentina missed the original benchmark due to a recent bond payment and ongoing market challenges, but the IMF granted a waiver and approved a two-billion-dollar payout.

To learn more about this story, check out the Rorshok Multilateral Update with the link in the show notes.

The country’s movie theaters also felt the pinch this winter break, posting their lowest ticket sales in fifteen years. Usually, July is the busiest month for theaters, mostly due to the winter break and the need to find activities to keep kids entertained, but this year attendance plunged by 21% compared to last year, with just under 4.7 million tickets sold.

Experts blame a mix of factors: the country’s tough economic climate is squeezing people’s budgets, which limits how often they splurge on entertainment; movie theaters are struggling to attract audiences due to fewer appealing new releases; and the rise of streaming services offers an affordable, convenient alternative that keeps people at home. High ticket prices and extra costs like snacks and transport add to the challenge, turning movie outings into a luxury many families can’t afford right now.

Meanwhile, Buenos Aires city officials are focusing on local sanitation issues. Mayor Jorge Macri has directed city police and the Security Ministry to penalize people — mostly from poorer communities — who rummage through trash bins, accusing them of making the city dirty. The mayor ordered officials to require anyone caught removing rubbish from bins to clean up immediately, and if they refuse, to face fines or community service under existing local laws.

To reduce these incidents and improve sanitation, the city installed 7,000 new anti-vandalism trash bins designed to prevent people from taking out garbage or causing damage. Despite this, vandalism of bins remains common.

There are bigger issues, though, such as the death toll linked to contaminated medical-use fentanyl, which has climbed to sixty-eight. The contaminated batch, produced by Laboratorio Ramallo under HLB Pharma, caused infections by harmful bacteria in patients receiving fentanyl for pain relief after surgery or cancer treatment. ANMAT, Argentina’s National Administration of Drugs, Food and Medical Technology, halted the use of the batch and suspended production.

Last week, family members of patients who died from contaminated fentanyl protested quietly outside the Hospital Italiano in La Plata, the capital of Buenos Aires province, demanding justice. Lawyers are reviewing medical records to establish a clear connection between the contaminated drug and the fatalities. So far, investigators have conducted multiple searches but have not made any arrests.

From one health threat to another, a new strain of Covid-19 known as XFG — nicknamed the Frankenstein variant — has been detected in Argentina. Health officials identified three cases through genomic testing during late June and early July, part of a broader trend seen in almost forty countries.

Although it sounds alarming, experts say it doesn’t appear to be more dangerous than the Omicron variants. The Health Ministry emphasized that vaccination remains the best protection.

Now, for a random story: A police officer recently received a fifteen-month suspended sentence for letting four detainees out of their holding cell to work at his own wedding. The men cooked, served food, and cleaned up at the reception, which took place just a block from the police station. Amazingly, after the festivities, they all returned to their cell without incident. Prosecutors were shocked that none of them tried to escape, and although it’s not clear what the men were originally being held for, the officer still ended up being found guilty of abuse of power.

Finishing off with a quick reminder: the 17th of August marks the anniversary of the death of José de San Martín, one of the country's most important national heroes and a key figure in South America’s independence from Spain. Normally, it’s a public holiday, but since this year it falls on a Sunday, the government has declared Friday the 15th a non-working day instead.

This isn’t quite the same as a national holiday. The difference mainly comes down to how businesses and workers handle it: government offices and schools usually close, but private employers can decide whether to give the day off or have staff come in. If employees do end up working, they just get their regular pay, not double.

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

Did you know that we do lots of other updates? We’ve got non-country updates: The Arctic Ocean and Multilateral shows, and country updates, with a selection of nations from across the world.

Check the full list with the link in the show notes.

¡Nos vemos la próxima semana!