ARGENTINA: Senators’ Salary Increase & more – 22nd Aug 2024

¡Buenos días from Louse Point! This is the Rorshok Argentina Update from the 22nd of August twenty twenty-four. A quick summary of what's going down in Argentina.

The week started with the senators approving a 6% salary increase, which bumped their monthly pay to nine million pesos (almost 7,000 dollars). President Milei sharply criticized the measure and called it a betrayal of the Argentine people, saying that while executive branch salaries have been frozen since December, lawmakers are still clinging to their privileges.

Even though Victoria Villarruel, the Vice President and Senate head, did not directly approve the raise, Milei’s remarks seemed aimed at her. In response, Villarruel emphasized that the decision was made independently by the senators and not under her authority. Amid public outcry, she called for a Senate session to reconsider the raise, and they decided to backtrack. Senators from all parties are now presenting a formal request to detach their salaries from the union negotiations.

On Friday the 16th, President Milei outlined his plan to overhaul Argentina’s monetary system, shifting from a strict dollarization approach to what he calls “currency competition.” Speaking at the Expo Real Estate event, Milei explained that his plan would allow the Argentine peso, US dollar, and other foreign currencies to circulate freely, enabling people to conduct transactions in the currency of their choice. This strategy aims to address concerns about limiting monetary supply during economic growth.

Milei also reiterated his goal of eventually closing the Central Bank, stating that if enough dollars flood the economy, the institution could become obsolete.

One wholesaler took the concept of currency of choice quite seriously. Diarco has introduced its own Diarco dollar exchange rate, allowing customers to pay with US dollars at a rate higher than the parallel dollar. Shoppers can use cash dollars for purchases, which are priced in pesos, but must spend at least the full value of their dollar bills in-store, with any remaining balance paid in pesos.

On launch day, Diarco offered 1,400 pesos per dollar, surpassing the blue dollar rate by fifty-five pesos.

Despite President Milei’s positive outlook, consumption in Argentina has plummeted to levels not seen since the pandemic and even the two thousand one crisis. A report by pollster Scentia revealed that mass consumption fell by 16% year-over-year in July, with early August showing a further 21% drop.

The downturn spans all sectors, including food, beverages, hygiene, and cosmetics, and continues despite efforts like discounts and promotions. The impact is felt across the country, particularly in provinces where sales have dropped as much as 24%.

On a related note, teaching staff at public universities launched a forty-eight-hour strike on Tuesday the 20th, halting classes nationwide in protest of insufficient wage offers from the government. Unions argue that the proposed increases fall well below the inflation rate and fail to address the ongoing erosion of salaries.

Speaking of university students, a new study by the Fundación Tejido Urbano revealed that nearly 40% of young adults aged twenty-five to thirty-five still live with their parents or grandparents, amounting to more than two million people. This trend has remained steady for two decades, largely because young adults can’t afford to move out and live on their own. While higher incomes and better-developed rental markets in places like Buenos Aires help some become independent, the struggle is particularly tough in northern provinces.

Compared to other countries, Argentina’s situation is on par with Italy, where over half of young adults remain at home, but it’s far behind nations like Germany or the Netherlands, where the figure is much lower.

From young adults to children and teenagers, the local government in Buenos Aires City has introduced new rules to curb smartphone use in schools. Amid concerns about distractions, mobile phones will be banned from classrooms and break times at all educational levels. In primary schools, the responsibility for keeping phones out of class will fall on parents, while in secondary schools, phones and tablets must be stored away unless used for pre-approved educational activities.

In other news, a Liberian-flagged freighter has been quarantined off the Argentine port of San Lorenzo after a crewmember showed symptoms of monkeypox. The ship, arriving from Spain, has been isolated according to health protocols while experts assess the situation.

So far, the government has confirmed eight cases of monkeypox in the country, with only one patient having no travel history. The infected range from twenty-three to forty-four years old and are spread across the provinces of Buenos Aires, Corrientes, Santa Fe, and Río Negro.

Since we’re on the topic of health, Nicolás Kreplak, the Health Minister of the Buenos Aires Province, has warned of a severe dengue outbreak likely to hit soon. He noted that while dengue cases usually spike in March, this year they might start as early as December. Kreplak criticized the lack of a national eradication campaign during winter and highlighted that this year’s cases are spreading internally, rather than being imported.

Meanwhile, the national government has ordered more dengue vaccines to prepare for the upcoming season, though Kreplak mentioned that the available supply might not be enough to cover everyone.

Back to the topic of ports, the TecPlata terminal in La Plata, Buenos Aires, has become the country’s first port facility to earn carbon-neutral certification. The terminal has implemented energy efficiency measures, managed waste responsibly, and offset unavoidable emissions through certified carbon credits from renewable energy projects.

Speaking of ships, news outlets in Buenos Aires reported that a new shipment of gold from the Central Bank has left for London, marking the third such transfer under President Javier Milei's administration. The shipment is worth about 250 million dollars and involved transporting around 1,500 gold bars.

Luis Toto Caputo, the Economy Minister, defended the move, arguing that storing gold domestically without generating returns is inefficient and that keeping it abroad could offer better financial benefits. However, opposition lawmakers and critics have raised concerns about the secrecy surrounding these transfers, questioning the rationale and future plans for the gold.

An alfajor company also saw some gold this weekend. An alfajor that combines raspberries, ganache, and meringue covered in dark chocolate from Sr. Alfajor won the top prize at the twenty twenty-four World Alfajor Championships held in Palermo.

The competition, which ran from the 16th to the 18th of August, showcased over 180 alfajor brands from across Latin America, drawing more than 50,000 visitors.

Two sports events are expected to draw visitors, too. On the 5th of September, the national men’s football team will be playing against Chile at River Plate’s Monumental stadium in Buenos Aires for the World Cup qualifiers. Don’t expect to see Lionel Messi, though, since he is recovering from an ankle injury.

Also, the Pumas, the national men’s rugby team, are gearing up to host Australia and South Africa in their next twenty twenty-four Rugby Championship matches. With Argentina currently sitting third in the tournament, they’re aiming to improve their standing in these crucial home games. The Pumas will face Australia twice, first in the city of La Plata on the 31st of August and then in Santa Fe on the 7th of September, before hosting South Africa in the province of Santiago del Estero on the 21st of September. Tickets for these matches are available exclusively through Ticketek, with prices varying by location.

Before we go, here’s a heartwarming story that has captured international attention this week. In the Córdoba province, a farmer named Pedro Martin Ureta dedicated over forty years to creating a guitar-shaped forest in memory of his late wife. After her sudden passing in nineteen seventy-seven, Pedro was moved by her dream of designing a guitar-shaped grove on their ranch—a dream they never got to realize together. Starting in nineteen seventy-nine, Pedro and his children planted over 7,000 trees, including Cypress and Eucalyptus, to form the guitar’s outline and strings. Today, this kilometer-long forest is visible on Google Earth, and NASA has captured it with the Advanced Spaceborne Thermal Emission and Reflection Radiometer on the Terra satellite.

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

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

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¡Nos vemos la próxima semana!