ARGENTINA: Wildfires in Patagonia & more – 6th Feb 2025

¡Buenos días from Greenway Parks! This is the Rorshok Argentina Update from the 6th of February twenty twenty-five. A quick summary of what's going down in Argentina.

Wildfires near El Bolsón, in the south of Argentina, have burned around 3,000 hectares, forcing the evacuation of over 800 people. A man died from cardiac arrest after inhaling smoke inside his home. The fire, which started in the Cajón del Azul hiking area, spread rapidly due to strong winds and high temperatures.

The governor of the Río Negro province declared a state of emergency, banning open fires and strengthening prevention efforts until the 30th of April. Designated cooking areas in organized campgrounds operated by authorized personnel are the only exceptions. Violators of the fire ban will face the harshest penalties, including potential criminal charges.

The governor stated that the fire was deliberately set and promised to hold those responsible to account.

Further north, things are also scorching hot. High temperatures in provinces like Córdoba, Santiago del Estero, Chaco and Formosa have pushed energy demand to its limit, causing widespread outages. The National Meteorological Service has issued heat alerts for almost the whole country, including the Buenos Aires province, with warnings ranging from yellow to red depending on the severity. Some areas, like the Mendoza province in the western central part of Argentina, are under a red alert, signaling extreme health risks for everyone.

Authorities urge people to stay hydrated, avoid the sun during peak hours, and take extra precautions for vulnerable groups like children and the elderly.

Despite the heat, the 1st of February saw LGBT+ activists, feminist groups and other civil organizations hitting the streets to protest President Milei’s recent remarks at the World Economic Forum, where he criticized feminism, gender policies and the concept of femicide. The Federal March for Antifascist and Antiracist Pride took place in Buenos Aires and other cities, condemning Milei’s stance and his administration’s rollback of diversity policies, such as the planned elimination of femicide laws and non-binary gender markers on IDs.

Critics argue Milei is deliberately fueling controversy to rally his base ahead of the midterm elections, while the president says his speech has been edited to misrepresent his words. He dismissed the demonstrations as politically motivated and reshared posts mocking the march.

In twenty twenty-five, Milei faces two major challenges that will shape his political and economic future. The first is the midterm elections, where his party, Freedom Moves Forward or La Libertad Avanza aims to secure a strong position in Congress. This is crucial for Milei to maintain his economic reforms and prepare for the twenty twenty-seven presidential race.

The second challenge is managing the overvaluation of the Argentine peso, which, despite high inflation, has stayed stronger than expected, risking instability in Milei’s exchange rate-based stabilization plan.

On that note, the Central Bank lowered its key interest rate to 29%, marking its ninth cut since Milei took office. The decision comes as inflation shows signs of slowing and the government reduces the peso’s official monthly devaluation rate. While the move signals confidence in a continued decline in inflation, some analysts warn it could backfire if price increases don’t slow as expected, potentially pressuring the peso.

The International Monetary Fund, or IMF, will be another key player this year. Argentina is in the final stages of negotiating a new deal that includes an eleven billion dollar loan to help stabilize the Central Bank and enable the removal of currency and capital controls.

A major focus of the talks is how to manage exchange rate policies. Some economists are advocating for a floating exchange rate, which adjusts based on supply and demand, rather than the current pegged system. However, without sufficient foreign reserves, the peso’s value could become highly volatile. The IMF’s backing could help the government strike a balance between exchange rate flexibility and the need to maintain strong reserves.

Argentina’s currency reserves are under additional pressure this summer due to a surge in foreign currency credit card spending. Outbound tourism and demand for international goods have spiked, with many Argentines traveling to affordable destinations like Brazil. As a result, credit card purchases abroad have nearly tripled compared to last year.

Also part of the twenty twenty-five plan is issuing a new emergency degree that will eliminate or merge over fifty government agencies. Federico Sturzenegger, the Minister of Deregulation, aims to scrap offices deemed unnecessary. Among the affected agencies are research institutions like CONICET, regulatory bodies such as ENACOM and ENRE, and state-owned companies including Aerolíneas Argentinas and Banco Nación.

The government has also restructured the Security Ministry, renaming it the Ministry of National Security and expanding its mandate. It now focuses on combating federal crimes such as drug and human trafficking. The redefinition of security emphasizes protecting citizens’ lives, freedoms, and property as essential to national progress.

The government also dissolved the Press Secretariat and shifted its duties to the Presidential Secretariat of Communication and Media. Manuel Adorni, the presidential spokesperson, now leads the office, further increasing his influence.

Speaking of security, the government is considering sending its Armed Forces to the Triple Frontier, a region shared with Brazil and Paraguay. This move aims to tighten controls on border crossings, particularly to address illegal immigration and smuggling. While the government is working out the details of troop deployment and technology use, the decision has surprised Brazilian officials, who were unaware of the plans until the announcement.

In other news, Wingo, the Colombian low-cost airline, is expanding its operations in Argentina, now offering direct flights from Córdoba and Rosario in central Argentina, as well as Mendoza, to international destinations, bypassing Buenos Aires. This expansion is part of broader efforts to decentralize air traffic and boost regional tourism.

From planes to land vehicles, the government has officially issued a decree allowing self-service fuel pumps at service stations. The new policy aims to reduce costs and potentially lower fuel prices for consumers. Even though some stations will still offer traditional service, especially during busy hours and in provinces where fuel pumps are still regulated by law, unions are concerned that the change could lead to the loss of up to 70,000 jobs.

The shift also includes the possibility of mobile stations, further reshaping the landscape of fuel distribution in the country.

Also on the topic of lowering prices, supermarket associations are pushing for some relief on everyday goods, especially food. The Argentine Supermarkets Chamber and the Federation of Supermarkets and Self-Service Stores sent a letter to President Milei, supporting his economic policies but stressing that high taxes are still driving up prices for consumers. They argue that nearly 50% of essential goods’ prices come from taxes and are calling on provincial and municipal governments to lower their tax burden.

Switching gears to sports—the twenty twenty-five Argentina Open kicks off this Saturday the 8th in Buenos Aires, bringing together top international players and local favorites. Leading the pack is world number two Alexander Zverev, joined by rising stars Holger Rune and Lorenzo Musetti. Argentine hopefuls include Francisco Cerúndolo, Sebastián Báez, and defending champion Facundo Díaz Acosta. The tournament will take place at the historic Buenos Aires Lawn Tennis Club. Tickets range from 8,500 pesos (which is about seven dollars) for early matches to 75,000 pesos (around sixty dollars) for the finals, while the qualifying rounds remain free to attend.

And to wrap up this edition, a recommended read: The Telegraph published an article that recounts a road trip through Argentina, starting in Buenos Aires and heading northwest to Salta. Along the way, the author explores the Pampas, Córdoba’s Jesuit sites, the archaeological ruins of Quilmes, and the vineyards of Cafayate, experiencing architectural gems, wildlife, and mountain vistas. It concludes with practical tips and suggestions for road trips across Argentina, emphasizing the allure of exploring its vast, varied regions.

To read the article, follow the link in the show notes.

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

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