ARGENTINA: The IMF Deal & more – 3rd April 2025

¡Buenos días from Greenway Parks! This is the Rorshok Argentina Update from the 3rd of April twenty twenty-five. A quick summary of what's going down in Argentina.

There are updates on Argentina’s deal with the International Monetary Fund or IMF. On Thursday the 27th, Luis Caputo, the Economy Minister, said the government had reached an agreement with the IMF for a 20 billion dollar loan. The next day, Julie Kozack, the IMF’s spokesperson, confirmed that the country had requested a 20 billion dollar Extended Fund Facility, but clarified that the lender’s staff has not yet agreed on the amount.

This uncertainty around the IMF deal is having consequences in the market. The parallel dollar exchange rate shot up to 1,310 pesos, and the Central Bank has been selling dollars for eight consecutive days, losing 1.3 billion dollars in the process. Reserves have dropped to their lowest level in over a year and the government is in a rush to strengthen them.

Investors worry the government might ditch its controlled 1% monthly devaluation in favor of a more flexible currency band. Caputo dismissed these concerns, arguing that the lack of pesos in circulation makes it impossible for the dollar to spike.

However, if this situation plays out, it will likely have an impact on the upcoming elections. At the moment, all attention is on the candidates for Buenos Aires City’s legislative elections, set to take place on the 18th of May, several months before the national midterms. On that note, Manuel Adorni, who is currently serving as the presidential spokesman, made the headlines after announcing he will lead La Libertad Avanza’s ticket in the Buenos Aires City legislature elections. His candidacy positions him as the face of the party’s campaign against PRO, the city’s longtime ruling party, and Peronism.

Foreign residents with permanent residency status are eligible to vote, including those for mayor, city legislators, and community board members.

To learn more about the candidates, follow the link to an article by the news outlet Buenos Aires Herald in the show notes!

Wednesday the 2nd marked the Day of the Veterans and Fallen Soldiers of the Malvinas War. It commemorates the Argentine soldiers who fought in the nineteen eighty-two South Atlantic War against the United Kingdom. President Milei led a ceremony in Plaza San Martín in Buenos Aires, where he honored the fallen as heroes and reaffirmed Argentina’s claim over the islands, insisting that only an honest government can make a serious case for sovereignty. He also said that turning the country into a global powerhouse would make islanders want to be Argentine.

Top officials joined him, except for Vice President Victoria Villarruel, who held a separate event in Ushuaia at the southernmost tip of Argentina. She took a more traditional stance, focusing on national defense and condemning what she called efforts to distort the history of the war.

Another topic that made the headlines has to do with Italy’s citizenship rules. Because Argentina has the largest Italian-descendant population outside of Italy, many Argentines have obtained Italian passports through right of blood during the last few decades. This process granted citizenship to those who could prove descent, even up to great-great-grandparents. However, Italy has tightened its citizenship rules, now allowing only those with an Italian parent or grandparent to apply.

The reform comes amid a surge in applications, with Argentina seeing tens of thousands of approvals in recent years, including President Milei’s fast-tracked case, which fueled political debate.

Speaking of international matters, Argentine authorities uncovered a human trafficking ring linked to a Montenegrin cult, arresting fourteen people—mostly Russian nationals, including the alleged leader—at airports in Bariloche and Buenos Aires. The case broke when a malnourished Russian woman, visibly younger than her claimed twenty-two years, raised alarms at hospital in the southern Río Negro province while under strict watch by her companions.

Investigators found the cult operated under extreme control, stripping followers of their belongings, forcing them into obedience, and feeding them only after senior members had eaten.

As suspects tried to flee to Brazil, security forces seized documents and evidence pointing to a larger network. Prosecutors continue investigating, believing more members remain at large.

On that note regarding ongoing investigations, the trial has commenced for Germán Kiczka, a former provincial lawmaker, and his brother Sebastián. They are being tried in Misiones province, in northeastern Argentina, on charges of possessing and distributing child sexual abuse material. Prosecutors are seeking a fifteen-year prison sentence.

If you’ve been experiencing technical issues with the Revenue and Customs Agency, or ARCA, website, you’re not the only one. Workers staged a digital blackout on Tuesday the 1st to protest against low wages and government austerity measures. Hundreds of workers were reportedly laid off through voluntary retirements, and several offices have shut down.

The Tax Employees Union has also announced plans to join the national strike organized by the CGT, Argentina's largest trade union confederation, on the 10th of April.

Also related to customs, Donald Trump just hit Argentina with a major tariff hike, setting a minimum 10% tax on all imports starting on the 5th of April. That’s a big jump for many Argentine products like food, chemicals, plastics, and metals. Trump framed the move as a way to bring jobs back to the US and push foreign companies to set up shop there.

Banking on his personal connection with Trump, Milei will try to negotiate exceptions, but the talks won’t be easy. He traveled to Florida on Thursday the 3rd to receive the Make America Great Again award at Donald Trump’s Mar-a-Lago residence, and while there, he hopes to have an informal meeting with Trump to push for a better deal.

Switching gears, Argentina has started sending natural gas to Brazil through Bolivia’s pipeline network, marking a first in regional energy trade. The gas, sourced from the Vaca Muerta shale patch in the southern Neuquen province, moves through Argentine pipelines before entering Bolivia’s state-owned oil and gas company’s system and reaching Brazil under a three-way agreement signed in late twenty twenty-four. This deal benefits all parties: Argentina revives its energy sector, Bolivia shifts from exporting gas to profiting from pipeline leases, and Brazil secures more supply to meet its growing industrial demand.

In other news, the twenty twenty-five Buenos Aires Independent Film Festival, or Bafici, will be running from the 1st until the 13th of April across various venues in Buenos Aires. This year, it will spotlight British rock documentaries in a special program called Britannia B Side: We Will Rock You. The series will feature nine films focusing on influential UK bands like Oasis, Pulp, Gorillaz, and The Slits, exploring iconic moments in British music history. Highlights include documentaries on the rise of Britpop, legendary festivals like Glastonbury, and the impact of punk icons like Poly Styrene.

Talking about Britain, Marianela Núñez, the Argentine ballet principal dancer at The Royal Ballet in London, has been awarded the Officer of the Order of the British Empire by King Charles III for her outstanding contributions to dance. At forty-three, Núñez received the honor during a special ceremony at Windsor Castle, attended by her parents.

Moving into pop music, the British-Albanian singer Dua Lipa will kick off the Latin American leg of her Radical Optimism world tour in Buenos Aires on the 7th of November, performing at the River Plate Stadium. This marks her third performance in Argentina, with previous shows in twenty seventeen and twenty twenty-two. Pre-sale tickets will be available on the 8th of April, with general sales starting on the 10th of April.

Before we go, a reminder that if you're visiting Argentina and stressing about not having a SUBE card for public transport, there’s good news. The country is introducing contactless payments for buses and trains, letting you tap your Visa or Mastercard, whether it’s debit, credit, or prepaid. You can also pay straight from your phone or smartwatch using Apple Pay, Google Pay, or any NFC-enabled device. This system is already up and running in major cities like Buenos Aires, Mendoza and Córdoba, with plans to expand further.

In Buenos Aires, several bus lines, including four, twelve, thirty-four, thirty-nine, sixty-one, sixty-two, and sixty-eight, already support tap-and-go payments, and more are coming soon.

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

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¡Nos vemos la próxima semana!