Currency Exchange in Argentina: Navigating the Pesos and More

Why Are There Two Exchange Rates in Argentina

The official exchange rate is set by the government and is typically lower than the black market rate. This rate is used for official transactions, such as imports, exports, and government transactions. The government implements these restrictions to maintain control over the country’s foreign currency reserves and to prevent capital flight.

On the other hand, the black market exchange rate, also known as the ” blue dollar” rate, refers to the unofficial rate at which currencies are traded in the informal market. This rate is determined by supply and demand dynamics and is usually higher than the official rate. Many people, including both locals and tourists, participate in the black market to obtain a better value for their foreign currency.

The existence of two exchange rates means that the official rate may not accurately reflect the true value of the local currency, making it less attractive for currency exchange. As a result, many people opt to exchange their money at the black market rate. How the Official Rate is Determined The official exchange rate in Argentina is determined by the Central Bank of Argentina. They usually set a fixed rate, also known as the “official rate,” which is used for government transactions and certain imports. This official rate is often lower than the market rate, meaning you get fewer pesos for your money when exchanging at this rate.

How Does It Impact Travelers?

As a traveler, you need to keep an eye on both exchange rates. The official rate is what you’ll see at the bank or when using your card. But it’s the blue dollar that should grab your attention, as it can offer you more pesos for your foreign currency. This parallel rate fluctuates significantly and is used in cash transactions, which are widespread in Argentina. You might also hear about the MEP rate, or “Mercado Electrónico de Pagos,” which is a legal way for Argentines to get dollars through the stock market and can be another point of reference for understanding the economic landscape here. Understanding these rates is key to maximizing my spending power while I explore Argentina.

Milei & The Big Devaluation: What Does It Mean?

With the recent change in government and the implementation of new monetary policies, including devaluation, the economic landscape in Argentina is undergoing significant shifts. President Javier Milei’s agenda includes plans to dollarize the economy, a move that has far-reaching implications for both locals and tourists. While the full effects of these changes remain to be seen, they are already impacting daily life in Argentina, with inflation on the rise and economic uncertainty prevailing.

What Is The Exchange Control In Argentina??

Exchange control in Argentina refers to the set of government regulations and restrictions on currency exchange in the country. These controls are put in place to manage foreign currency reserves, stabilize the economy, and prevent capital flight. In general, the country has adopted a managed floating exchange rate system. This means that the central bank intervenes in the foreign exchange market to prevent excessive fluctuations in the value of the currency

One of the main exchange controls implemented in Argentina is the restriction on the purchase of foreign currency. Another form of exchange control is the limitation on the amount of foreign currency that can be purchased or withdrawn.

Additionally, Argentina has imposed restrictions on the movement of capital in and out of the country. These restrictions aim to prevent large-scale capital outflows and speculative activities. The exchange control measures in Argentina have led to the existence of two different exchange rates, as mentioned earlier.

• Key Points:
• • USD Purchase Limits: Officially capped at $200 a month with taxes.
  • Taxes on Exchange: Transactions through official avenues come with hefty additional costs.
  • Alternative Options: While informal markets might offer better rates, they come with their own risks.

Understanding the nuances of these exchange controls is crucial for anyone looking to get a handle on their financial movements within Argentina.

Where to Exchange Currency in Argentina

1. Casas de Cambio: Exchange offices, known as “Casas de Cambio,”, are my go-to because they’re pretty common, especially in tourist areas. They offer a range of currencies and the exchange rates are usually pretty fair. It is recommended to compare rates at different exchange offices to ensure you are getting the best deal. I found a difference up to 10% at different cambios. Keep in mind that some exchange offices may charge fees or have minimum exchange amounts.
2. Banks are another option, and they’re trustworthy, but I’ve noticed that their rates can be a bit less favorable than Casas de Cambio. Plus, there might be a bit more paperwork. However, if I’m after security and peace of mind, I don’t mind spending a little extra time at the bank. Additionally, banks usually require your passport for identification purposes.
3. Western Union: A popular place I can never overlook is Western Union. It’s widespread and I can pick up cash sent from abroad. It’s straightforward and pretty fast, but again, watching out for the service charges is key.
4. Airports: While you can change money. the airport, I’d advise agains it as it often offers you the exchange rate close to the official rate.
5. Calle Florida: A bustling street in Buenos Aires where street money changers, known as “arbolitos,” operate. They offer exchanges at the blue rate and can be found in nearby shops or exchange houses.
6. On touristy streets: While cambios are easy to find in Buenos Aires, I really struggled to find a good exchange rate in other cities in Argentina. In the tourist areas of other cities, there will be people offering you rates – they lead you to a shop that is willing to exchange money often at the blue rate. Though technically not legal, this is very common and worked fine for me.
7. Shops and restaurants: A lot of shop owners want to get a hold of the dollar so will happily change money for you at the blue rate. The same applies to restaurants. These establishments will also let you pay in USD.

Using Credit Cards in Argentina

When I’m traveling around Argentina, using my credit card is a convenient option. The current regulations, as of late 2022, introduced the MEP rate which is more favorable for foreign cardholders like me. Here’s how it works:

• Visa Cards: They charge the MEP rate at the time of purchase.
• Mastercard: I’m charged the official rate initially, but get refunded the difference a few days later.

This is excellent because it means I can make the most out of my money without needing to carry a lot of cash.

Here are a few things I keep in mind:

1. Carrying Cash: It’s still a good idea to have some cash on me, as smaller businesses may not accept cards.
2. MEP vs. Official Rate: My expenses are charged at the MEP rate, which generally works out better than the official rate.
3. ATM Withdrawals: For the best rates, avoid using my card for cash advances as the MEP rate doesn’t apply.

Remember, the MEP rate benefits only apply to purchases, so it’s generally better for shopping and dining out rather than getting cash out of ATMs. I’ve found that knowing the ins and outs of using my credit card in Argentina saves me both time and money, making my trip much smoother.

Best Practices for Currency Exchange in Argentina

Check the Current Exchange Rate

1. Research Exchange Rates: Before your trip to Argentina, be sure to research the current exchange rates for the currency you will be exchanging. This will give you an idea of what to expect and help you determine if the rates offered are fair.
2. Every time you exchange money, check the blue dollar rate for that day. https://bluedollar.net/ and https://cuex.com/en/usd-ars_pa are websites you can use to see what rate you should be getting.

2. Carry US Dollars: US Dollars are widely accepted in Argentina and are often used as an alternative currency. It is advisable to carry some US Dollars versus any other currency with you to secure a better exchange rate, especially for larger transactions.

Argentina Money Tips

• Avoid exchanging currency before arrival to avoid unfavorable rates.
• Bring clean, high-denomination US dollar notes for better exchange rates. The 100 dollar bill will give you a better rate than the 20 dollar bill.
• Book accommodations and tours online to minimize cash usage.
• Spend remaining pesos before departure to avoid unfavorable exchange rates.
• If you are going to other cities, it’s best to change your money in Buenos Aires. We struggled a lot with exchanging money in El Calafate and Ushuaia.

Money in Argentina: FAQs

Can I use travel cards in Argentina?

Travel cards like Wise can be used but may offer less favorable rates compared to credit cards. Cash remains the preferred payment method in many establishments.

Can I use traveler’s checks in Argentina?

While traveler’s checks are accepted, exchanging them can be time-consuming. Cash or credit cards are more practical for day-to-day transactions.

Are US dollars accepted in Argentina?

While some establishments may accept US dollars, pesos are the preferred currency. Exchanging US dollars for pesos at the blue market often offers better rates.

How safe is it to carry cash in Argentina?

While generally safe, travelers should exercise caution and use security accessories when carrying large sums of cash.

How much cash can I exchange in a day at Western Union?

A: The amount you can exchange at Western Union may vary, with smaller cities often having lower limits. It’s advisable to check with your specific location for details.