October 03rd, 2025
1. Senate Rejects President Milei’s Vetoes
The Senate once again tested the limits of presidential power. The opposition convened the chamber to overturn Javier Milei’s vetoes of the university funding and pediatric emergency laws. The Government is now obliged to implement measures it tried to block.
La Nación: El Senado busca imponer el financiamiento a las universidades y hospitales pediátricos
2. Argentina’s Central Bank Tightens Exchange Controls as Currency Gap Widens
The Central Bank (BCRA) of Argentina has reinstated the cross-market restriction, imposing a 90-day waiting period during which buyers of the official dollar cannot operate with the Contado con Liquidación (CCL) or the MEP dollar, and vice-versa. This move is aimed at curbing arbitrage operations (“rulos”) resulting from the incipient currency gap that had formed between the various foreign exchange markets. The market reacted with a rise in financial exchange rates and a further widening of the gap. The monetary authority published Communication “A” 8336 this Friday, modifying the foreign exchange regulations. Additionally, the Central Bank pressed for virtual wallets to stop selling the official dollar to their customers, a measure that primarily impacted two companies: Mercado Pago and Cocos Capital. Both the decision taken and the manner of its implementation sowed confusion in the fintech world.
3. Debate Continues on Packaging and Budget Bills
Yesterday, during his presentation of the 2026 Budget in the Chamber of Deputies, the Secretary of the National Treasury, Carlos Guberman, indicated that the draft bill is “earmarked 80% for social services.” He also noted that the proposal foresees “a decrease in subsidies and service tariffs” and increases in allocations for Health and Education, including universities. He also referred to the recently vetoed laws, asserting that “the resources do not exist.” Similarly, deputies, companies, cooperatives, and environmental organizations agreed in an informative meeting of the Chamber of Deputies’ Natural Resources Committee on the urgency of a national Packaging Law with extended producer responsibility. After three decades of failed attempts, the public hearing showed points of agreement on the need for a federal framework that prevents regulatory fragmentation, defines gradual goals, promotes the use of locally recycled material, and includes carton pickers (“cartoneros”) and cooperatives in the system in some manner.
4. Deputy Espert Accused of Receiving Money from Businessman Linked to Drug Traffickingcotráfico
Deputy José Luis Espert spoke this Wednesday following the legal complaint filed by Juan Grabois which links him to “Fred” Machado, a businessman allegedly connected to drug trafficking who reportedly transferred him $200,000. When questioned about whether he received the money, the candidate seeking to renew his seat for La Libertad Avanza dodged the response, while asserting that he can “justify” all of his funds.
Clarín: José Luis Espert eludió responder sobre si recibió 200.000 dólares de Fred Machado
5. New support for Argentina from Scott Bessent
US Treasury Secretary Scott Bessent shared his renewed support for Javier Milei’s administration on social media platform X: “The US Treasury is fully prepared to do what is necessary, and we will continue to watch developments closely’’. In his message, Bessent also confirmed that the head of the Ministry of Finance and his team will visit Washington in the coming weeks in search of “significant progress” in the dialogue surrounding US financial support for Argentina. “After intensive work since [US President Donald] Trump’s meeting with President Javier Milei in New York, in the coming days I look forward to Minister Caputo‘s team coming to D.C. to meaningfully advance our discussions in-person regarding options for delivering financial support”, the Treasury Secretary posted. In addition, Bessent revealed that, at his meeting on Wednesday with G7 finance ministers, he emphasized “the importance of the success of President Milei’s economic policies for the people of Argentina, for the region, and for the G7.”