ARGENTINA: Dengue & more – 11th Apr 2024

¡Buenos días from Greenway Parks! This is the Rorshok Argentina Update from the 11th of April twenty twenty-four. A quick summary of what's going down in Argentina.

The dengue outbreak is reaching historic levels, with 230,000 confirmed cases and more than 160 deaths. Scientists are warning of an earlier and broader spread of the dengue-carrying mosquitoes due to climate change, and their expansion into cooler southern regions.

On top of that, there’s a repellent shortage leading to conflicts in supermarkets, rationing, and the resort to homemade remedies. After being criticized for the lack of action, the government has temporarily removed import taxes on repellents, but prices remain exorbitant.

On Monday the 8th, the executive welcomed a donation of more than 20,000 bottles of SC Johnson’s mosquito repellents from Mexico to combat the scarcity. The government will distribute them among vulnerable populations across the country.

Even the BBC published an article about the dengue situation, titled “Argentina battles dengue surge and repellent shortage.” Check it out with the link in the show notes.

While the dengue cases go up, the blue dollar is going down. The parallel exchange rate for the US dollar dropped below 1,000 pesos on Friday the 5th, continuing its downward trend and reducing the gap with the official exchange rate to just twelve percent.

Analysts attribute this decline, which marks a twenty-one percent decrease since its peak in December, to various factors, including increased international reserve accumulation by the Central Bank and the ongoing grains harvest season, which bolsters dollar supply.

It would be fair to assume this drop leads to lower prices, but that may not be the case, especially for public service tariffs. The government announced significant hikes in gas, water and electricity tariffs for April, ranging from 150% to 500%, with analysts warning that the actual increases could be even higher.

These hikes are the result of reduced or cut subsidies to improve the fiscal balance and are expected to contribute to April’s inflation rate. The government has also instructed public companies to adjust tariffs monthly based on fluctuations in the exchange rate, essentially dollarizing part of the tariffs.

And as if the rising of the cost of living wasn’t enough, the government is negotiating with legislators to bring back the income tax, or Impuesto a las ganancias. The new minimum threshold is set to be $1.8 million pesos (some 1,800 US dollars) monthly for singles and $2.2 million (or 2,200 dollars) for married individuals. The agreement also includes a progressive tax scale ranging from five percent to thirty-five percent and provisions for adjusting the thresholds in line with inflation.

After failing to pass in the Lower House, the draft of this new law will be sent to block leaders and governors for review, with the government aiming for a vote by the end of the month.

Not everyone is happy about these developments, but you know who is? The International Monetary Fund (or IMF). Last week, they praised Argentina’s “impressive” progress in fiscal surplus, reserve rebuilding, and inflation reduction. Despite ongoing economic struggles, the IMF expressed support for the government’s plan, emphasizing the need for continued improvement in fiscal austerity and monetary policy adaptation during the transition.

In other news, Manuel Adorni, the presidential spokesperson, announced that the government is working to introduce contactless payment options for public transport fares, allowing commuters to use debit cards and virtual wallets alongside the existing SUBE card system. While the government didn’t provide a specific launch date, they are committed to diversifying payment methods. So, if you’re planning to travel to Argentina in the near future, you may be spared the need to buy a SUBE card.

Another project in the works has to do with cryptocurrency. The National Securities Commission (or CNV), the country’s top financial regulatory body, has expressed its intention to collaborate with the crypto industry to enhance oversight of the sector. Amidst growing crypto adoption in response to economic challenges like inflation, the CNV has introduced a registry for crypto exchanges and service providers, aiming to simplify procedures and eliminate unnecessary formalities.

Moving on, the Center for Legal and Social Studies (or CELS) has filed a legal complaint against Security Minister Patricia Bullrich’s new police gun guideline, which broadens the circumstances, allowing officers to use lethal force without prior warning. The CELS argues that this expansion violates universally recognized principles governing the use of deadly force and poses a severe risk to public safety. The lawsuit seeks to have the guideline declared unconstitutional and halted from implementation.

On that note about law enforcement, President Milei outlined plans to privatize prisons, selling them to real estate firms to finance the construction of large-scale penitentiaries capable of accommodating up to 6,000 inmates. His proposal includes selling existing prisons located in urban areas, which have become residential due to urban expansion, with the proceeds funding the construction of new facilities in remote areas. According to the president, these new prisons would offer enhanced security, better amenities, and increased capacity at no cost to the government.

Also on the topic of costs, the HSBC bank has agreed to sell its Argentine division to Grupo Financiero Galicia for 550 million dollars, marking a strategic move as the bank shifts its focus to its core Asian operations. Argentina’s economic challenges were cited as factors influencing the decision. The completion of the sale is expected within the next twelve months, subject to regulatory approvals.

For all the cinephiles out there, we also have good news. The Buenos Aires Independent Film Festival (or BAFICI) has unveiled its line-up for its 25th edition. The festival will take place from the 17th to the 28th of April across thirteen venues in Buenos Aires City. Despite recent government cuts to the Argentine film industry, the festival remains steadfast, with 260 films set to be showcased.

The BAFICI will open with Lucía Seles’s film School Privada Alfonsina Storni and close with José Luis García’s Fuck You! The Last Show, a documentary on the band Sumo. Plus, it will also feature special tribute sections honoring directors Jorge Polaco and Eva Landeck, alongside screenings of classic films.

As for the ticket sales, this year the festival launched its own platform. Tickets are 1,500 pesos (a dollar and fifty cents) for the general public and 1,200 pesos for students and senior citizens. They can be purchased online or in person at the Teatro San Martín and many other theaters listed on the website. Link in the show notes!

Speaking of films, the renowned Argentine filmmaker Juan José Campanella, who’s known for his Oscar-winning film The Secret in Their Eyes, announced on Instagram his involvement in an upcoming series adaptation of Mafalda. Mafalda is the beloved Argentine comic strip created by cartoonist Quino.

Debuting in nineteen sixty-three, Mafalda gained fame for its social commentary and witty portrayal of a young girl navigating life in the San Telmo neighborhood of Buenos Aires City. What we know so far about the film is that Campanella will focus on the cartoonist’s insightful perspective on human complexity, and that it will be produced by the director’s animation company, Mundoloco CGI.

For those who are more into sports than movies, the European Union-Buenos Aires Race twenty twenty-four may be worth checking out. The event is set to take place in the Bosques de Palermo on the 5th of May and will offer seven-kilometer and fifteen-kilometer running races, along with a two-kilometer walk. It aims to foster connections between Argentines and Europeans while promoting solidarity, as proceeds will benefit the Argentine Confederation of Athleticism and Fundación Baccigalupo, supporting individuals with mental disabilities through sports.

Participants can register online, with fees ranging from 10,000 to 15,000 pesos (ten to fifteen dollars at the parallel exchange rate.) A doctor’s certification of good health is required for registration, and race kits can be collected in person.

And that’s it for this week! Thanks for joining us!

We want to invite you to take a look at one of Rorshok's other projects. The Daily Knowledge is a daily pocket newspaper that comes out Monday through Friday. It is in our Ourzine format, a little booklet that you have to print in order to read. In the Daily Knowledge ourzine you’ll find a collection of interesting newsletters and selected articles that take about an hour to read. Visit rorshok.com/ourzines/thedailyknowledge/ to find the latest editions. The link will also be in the show notes.

¡Nos vemos la próxima semana!