¡Buenos días from BA! This is the Rorshok Argentina Update from the 24th of July twenty twenty-five. A quick summary of what's going down in Argentina.

Let’s start with some important news for immigrants in Argentina. The Milei administration has carried out its first deportation under a tough new immigration policy, expelling a sixty-year-old Afro-Uruguayan man who had lived in Argentina for nearly two decades and is the father of two Argentine-born children.

Authorities removed him despite his right to permanent residency and the fact that a prior conviction — an eighteen-month suspended sentence handed down in twenty twenty-one for threats and disobedience — had already expired. The charges stemmed from a domestic dispute, and the court never required jail time. Under existing immigration law, only those convicted of crimes with sentences longer than three years are subject to removal, which makes this deportation legally questionable.

Milei’s sweeping immigration decree also restricts access to healthcare and education for migrants and raises the bar for obtaining residency or citizenship. Critics argue that the measures are unconstitutional and target vulnerable communities under the guise of national security.

Meanwhile, the government saw not one but two high-profile resignations this week. First, Demian Reidel, one of President Milei’s closest advisors, stepped down from his role to focus fully on leading Nucleoeléctrica S.A., the state-owned company in charge of Argentina’s nuclear power plants.

The next day, Eduardo Bustamante, a seasoned diplomat and the second-in-command at Argentina’s Foreign Ministry, stepped down after nine months on the job. Neither he nor the government gave a reason for the move, though the Foreign Ministry confirmed he will stay on as part of the diplomatic corps.

These two add to a growing list of over 150 officials who have left government roles since December, including eleven from the foreign ministry alone.

Despite losing key players, the administration is pushing full steam ahead with major reforms. One of the biggest is the full-on privatization of AySA, the country’s state-run water and sanitation company. They plan to sell 90% of the state’s shares, with at least 51% going to a strategic operator through a national and international bidding process. The rest will hit the stock market. Workers will keep their 10% stake through the existing employee ownership program.

The government insists the move won’t interrupt water service and says AySA needs private investment to fix crumbling infrastructure and improve service.

Critics worry about the consequences, especially after a new decree gave AySA the power to shut off water for non-payment.

On that note about financial pressures, the government’s efforts to control the peso’s slide faced another challenge this week. Even after hiking interest rates sharply in an emergency bond sale meant to soak up excess pesos and cool dollar demand, the US dollar kept pushing higher, reaching nearly $1,300 pesos at Banco Nación. The Treasury’s costly move to offer better yields attracted investors but hasn’t stopped the peso from weakening, highlighting how tough it is to keep the currency stable right now.

That persistent pressure on the peso is also hitting local businesses hard. The number of empty shops in Buenos Aires City is skyrocketing, with a 40% jump in May and June compared to the same period last year. According to the local Chamber of Commerce, more than 200 shops are either for sale, rent, or completely shut down across the city’s main shopping streets.

All of this may influence the result of the midterm elections. Speaking of which, Peronism finalized its candidate lists for the Buenos Aires province legislative elections set for the 7th of September. The main Peronist alliance, Fuerza Patria, confirmed familiar faces like Gabriel Katopodis, the Infrastructure Minister, and Verónica Magario, the Vice Governor, both working in the province.

The election has drawn more attention than usual since Axel Kicillof, the governor, chose to separate it from the national vote in October, exposing tensions among the Peronist factions.

Back to the topic of reforms, a federal judge has blocked President Milei’s plan to shut down the National Highway Administration via decree. The court ruled that Milei’s special legislative powers didn’t allow him to close autonomous state agencies and that the decree violated workers’ rights by threatening their job security.

Milei’s administration argued the shutdown was necessary to fight corruption, but the court’s decision puts the closure on hold while these issues are debated.

From highways to public transport, starting the 1st of January, twenty twenty-seven, Buenos Aires City will require all new buses in the public transport system to run on compressed natural gas (CNG) or electricity, aiming to cut emissions and improve sustainability. Diesel buses already in service can keep running until they reach their lifespan.

To support this shift, the city plans to build new infrastructure like high-power charging stations for electric buses and specialized facilities for CNG vehicles. The move follows successful pilot programs that showed strong public approval, quieter streets, and zero greenhouse gas emissions. Additionally, all new buses will feature advanced safety tech to reduce accidents and improve driver awareness.

Buenos Aires City also aims to improve public transport with plans to modernize its busiest subway line, Line B, with a 300-million-dollar contract awarded to the Chinese company CRRC Changchun Railway Vehicles. The plan calls for 170 new air-conditioned train cars to replace the aging fleet, some of which are over sixty years old. These new trains will feature updated security cameras, better lighting, and modern information systems, while being compatible with improved signaling for safer rides.

The first new trains should start running by early twenty twenty-seven, marking the biggest investment in subway cars in ten years.

Argentina is also dealing with a surprising issue on its streets. If you’re living in the country, you may have noticed that a lot of cars don’t have license plates or are using temporary paper plates. That’s because the Casa de Moneda, the only factory making them, ran into supply problems and later closed.

Demand keeps rising, with record numbers of new car registrations making the backlog worse. To cope, the government brought in a new company and ramped up production, but still hundreds of thousands of plates remain delayed.

Meanwhile, some drivers have taken advantage of the situation by intentionally removing plates to avoid traffic fines and speed cameras, creating a new challenge for road safety and law enforcement. Authorities now have to carefully check whether missing plates come from delays or deliberate attempts to dodge penalties.

Beyond short-term headaches on the road, Argentina is also quietly undergoing a major demographic shift. According to researchers at the Universidad Austral, one in four households now consists of just one person living alone, the highest rate in Latin America.

At the same time, birth rates keep dropping, with the average woman having only 1.4 children. This is creating an aging society, where there are fewer young people and more older adults.

In other news, The New York Times recently featured a travel article for skiers in the Northern Hemisphere who want to chase winter during their summer by heading south to the Andes in Chile and Argentina. It highlights top ski destinations like Las Leñas and Cerro Catedral, emphasizing the dramatic alpine scenery, high-altitude skiing, and the unique après-ski culture that blends skiing with Latin American food, music, and nightlife.

Follow the link in the show notes to read the full article.

If you’re looking for something to do without leaving your couch, a new six-part drama on Prime Video explores the rise and rule of Carlos Menem, the former president whose legacy still shapes Argentina’s political and economic landscape today. Starring Leonardo Sbaraglia, the series follows Menem’s path from governor of La Rioja to president in nineteen eighty-nine, diving into his lifestyle, neoliberal reforms, and the long-term fallout of his policies—like the peso-dollar peg that ended in Argentina’s two thousand one economic collapse.

The show doesn’t shy away from controversy either, covering Menem’s involvement in arms trafficking, the AMIA bombing cover-up, and the legal protections he enjoyed as a senator. Its release comes at a time when President Milei frequently cites Menem as a role model, making the series especially relevant for those trying to make sense of Argentina’s current political tone and economic choices.

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

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¡Nos vemos la próxima semana!