ARGENTINA: The Copa América final & more – 18th July 2024

¡Buenos días from Louse Point! This is the Rorshok Argentina Update from the 18th of July twenty twenty-four. A quick summary of what's going down in Argentina.

There’s been a lot of football news this week, but the biggest story has to be the national men’s team winning the Copa América for the second consecutive time. It was a gripping final, but Argentina clinched a 1-0 victory over Colombia thanks to Lautaro Martínez’s decisive goal in extra time.

The match was quite eventful, both on and off the pitch. Thousands of fans, including many with tickets, were stuck outside Miami’s Hard Rock Stadium long after the scheduled eight p.m. kickoff. A crush of people without tickets tried to force their way in, leading to dangerous overcrowding, where many ended up squeezed against security fences for hours. Some Colombia fans went as far as sneaking through air vents. Security eventually closed the gates completely, but many without tickets still managed to get in.

The game started almost an hour and a half late. It was intense, with Colombia dominating the first half, but Argentina gained control as the match progressed. During the second half, Lionel Messi had to leave the game due to a swollen ankle, and images of him in tears on the bench flooded social media. However, those tears quickly turned to smiles when Argentina secured its 16th championship.

In Buenos Aires, thousands of fans gathered around the Obelisco to celebrate. These celebrations initially remained peaceful but escalated around four a.m., resulting in a twenty-nine-year-old man dying after falling from the BA sign, and six people arrested.

President Milei invited the national team to celebrate their victory at the Casa Rosada. He expressed his enthusiasm for hosting the champions on the presidential balcony but emphasized that the decision lies with the players. Since they rarely engage with politicians, it is unlikely that they will accept the offer.

Speaking of the president, his government has started selling U.S. dollars in the parallel market to strengthen the Argentine peso. As a result, the peso saw its largest one-day surge, rising over eight percent to trade at just under 1,300 pesos per dollar. This intervention aims to narrow the 500 peso gap between the official and parallel exchange rates. However, there are concerns that this is only a short-term fix. Selling dollars depletes the country’s foreign reserves, which are crucial for repaying international debts and ensuring economic stability.

Meanwhile, the Central Bank is implementing a new liquidity management scheme to control money supply more effectively. This involves using a new tool, Fiscal Liquidity Bills, or LEFIs, to replace the current practice of one-day repo operations with banks. By shifting interest-bearing liabilities from the Central Bank to the treasury, the government aims to stop printing money to pay interest, thus reducing inflationary pressures.

Another measure that President Milei’s administration announced this week has to do with significant changes to the intelligence system. The government will dissolve the Federal Intelligence Agency and reinstate the State Intelligence Secretariat, or SIDE, which previously operated under that name until it was restructured in twenty fifteen.

This new structure will consist of four departments focused on defense, internal security, and technology, all reporting directly to the president. Sergio Neiffert will lead the new SIDE. These changes are intended to modernize intelligence operations but have sparked concerns about transparency and freedom of the press.

As mentioned earlier, there’s been a lot of football news this week, and one major development is the government’s legalization of private sports corporations, or SADs, in the football sector. The General Judicial Inspection Board issued regulations aligning with President Milei’s December twenty twenty-three decree, allowing SADs to compete in the Primera Division beginning the 1st of November. While this decision aims to attract foreign investment, it challenges the Argentine Football Association, or AFA, which has historically opposed such privatization. This clash could lead to legal battles if the AFA refuses to comply with the decree’s requirements.

Also on the topic of football, the police in the Mendoza province arrested the founder of Fútbol Libre, the popular pirate football streaming site, for allegedly violating intellectual property rights. This happened right after a judicial order to block fifty web domains used for illegal game broadcasts, including the widely used Fútbol Libre. The twenty-three-year-old known as Kahsad only spent a few days in custody. The police released him on Monday the 15th due to his clean record and lack of financial gain from the websites.

That said, Fútbol Libre remains down, which is bad news for its millions of users. This platform gained prominence for offering free streams of Primera Division matches and international leagues, an alternative to the official broadcasters’ expensive subscription packages. This arrest underscores the ongoing challenges in Argentina’s football broadcasting landscape, where high costs and accessibility issues persist.

In other news, the president traveled to the United States for the fifth time since taking office to attend a conference organized by Allen & Company. The event is known for gathering CEOs and business leaders primarily from the tech and entertainment sectors, and for being a hub for discussions on global politics and future business trends, often facilitating major deals among attendees.

Another official seeking to promote investments is Axel Kicillof, the Buenos Aires Province Governor, who unveiled plans to introduce a new legislative bill aimed at establishing a provincial regime for strategic investments. This initiative is set to mirror the national investment regime, promising tax stability and other incentives to attract large-scale investments, boost production, and generate employment within the province.

The announcement comes amidst a competitive bid with the Río Negro province to host a new LNG plant on Argentina’s coast, a joint venture by YPF, the country’s largest oil and gas company, and Malaysia’s Petronas. The goal is to facilitate gas exports from the Vaca Muerta shale field. Kicillof emphasized the province’s commitment to supporting the project in Bahía Blanca, stressing ongoing efforts to streamline regulatory processes and collaborate closely with involved stakeholders.

Unfortunately, other companies may be doing the opposite of investing. BBVA, a prominent Spanish bank in Argentina, is reportedly considering an exit from the country amidst ongoing economic challenges that have impacted profitability in the banking sector. According to Mariano Gorodisch, an economics reporter, discussions are underway for the Petersen Group to potentially acquire BBVA’s operations, although negotiations are still in the early stages.

This potential move follows similar exits by other international banks like HSBC, now handled by local entities like Banco Galicia.

In other news, a massive forest fire in the Córdoba province has already burned through 3,500 hectares. While no homes suffered damages, provincial authorities are on high alert as the flames continue to spread. The fire started on the southern side of Cerro Champaquí and is challenging to control due to difficult terrain and adverse weather. Access to the fire is so tough that firefighters can only reach the area by helicopter, followed by a long hike.

From hikes to marches, Argentina held its second non-binary march on Sunday the 14th, which marked International Day of Non-Binary Visibility. Attendees gathered in front of the Congress building, where they highlighted the ongoing demands, including making the gender field optional on national IDs.

On that note, Día del Amigo is right around the corner. Each year on the 20th of July, Argentina celebrates National Friendship Day, a day dedicated to honoring friendships and the important role friends play in people’s lives. Celebrations typically involve gathering with friends for meals, parties, or other social activities, often accompanied by gift exchanges and heartfelt messages.

The tradition began in the nineteen seventies and has since become a significant social event.

Let’s end on a high note. The Economist has named Buenos Aires the most livable city in South America for the third year in a row. The news outlet ranks cities based on factors like environment, culture, infrastructure, stability, and healthcare. Montevideo, in Uruguay, took second place, excelling in environmental issues but lagging slightly in other areas.

Before we leave, we have a new invitation for you if you are in Buenos Aires. Our friends from Foodies Buenos Aires host a Mate Tasting + Walking tour on Saturday 27 of July. During the tour you’ll enjoy learning about the tradition of drinking mate, how to properly prepare one, and taste 3-5 different yerbas accompanied by facturas.

Foodies Buenos Aires wants to help people new to the city form meaningful connections and welcome them to this wonderful city we call home. Find them on Instagram as @foodiesbuenosaires and look for the link to the Mate event in the shownotes!


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

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