USD in Latin America

[retrovert]

This is a newbie question from first-timers to South America. I notice that all the prices I see quoted for hotels and tours in Chile and Argentina, including the private tours arranged on CC, are quoted in US Dollars. It looks like us tourists are expected to pay in USD for everything. Is that right? Are the local currencies used anywhere? And how do visitors deal with the lack of USD cash facilities? Is it necessary to bring a fully stuffed money belt? What happens if we run out?

 

Looking forward to cruising with everyone.

[LHT28]

 can use a CC  for hotels  ??

[retrovert]

I guess I should clarify that yes, hotels take credit cards everywhere. But how about side tours, airport transfers, restaurants etc.?

[boulders]

I went on a round the horn cruise a few  years ago. The CC South American port of call board had a lot of good info on it. Some things I learned from there: 1) In certain places, like Rio's airport, for example, ATMs cannot be trusted. Don't use them 2) Credit cards are OK in shops and hotels. 3) Private tours want brand new USD bills. But I think large bills are not OK (check on this). 4) In Argentina especially, they took lots of different currencies, including Brazilian reals. The Argentinian peso was unstable at that time and no one wanted them. Things may have changed. 

 

So, I ordered currency from a broker in Chilean and Brazilian currencies. I think I took British pounds for my tour in the Falklands. And I took brand new US bills for those who wanted US currency. Yes, my wallet was fat. I didn't rest easy until the stash of cash was in the cabin's safe. 

Edited November 10, 2018 by boulders

[MicCanberra]

They prefer USD as the currency is much more stable than their own currency and they also know many tourists prefer not to have to have local currency but they will obviously take both USD and their own currency. It also means they can have a little profit with in their own currency conversions. I would use a Credit card for larger transactions and cash for the smaller ones and tips etc which can be in local currency or in USD.

[paul929207]

US$ are widely accepted In central and South America. It is best to have exact change when making purchases.

[iancal]

Don't pay for your hotels in Argentina or Chile in cash.  Pay by credit card.

 

Tourists who pay with a foreign credit card are not required to pay the country VAT. It gets backed out of your room rate, or it should.  Prices are typically inclusive of VAT.

 

In Uruguay the same also applies to restaurant meals...the VAT is backed out.  The only provisio is that you must use a foreign credit card.  This VAT rebate did not apply to rental cars in either Chile or Uruguay.  Things have changed in Argentina over the past year so this may no longer be the case.  Won't hurt to ask.

 

As I recall, the saving is about 17 percent in those countries.

Edited November 11, 2018 by iancal

[MicCanberra]

Yes currently around 21% I think. Foreign guests are exempt from the taxes for Hotel stays. 

[Keith1010]

When it comes to anything you pay out of pocket whether or not you can pay by USA cash varies by tour and store so anyone who says you can use USA everywhere is wrong.  It does vary.

 

My own experience is that for most items Chili we do use local currency and in Argentina we use a mix of USA and local.  

 

Keith

[SRF]

I just get local currency out of an ATM.

 

Don't get too much.  Although, one trick is, if you are staying a hotel, dump your excess local cash onto your hotel bill.

 

Works most places.  A few places in the world (not cruise destinations) will US dollars or sometimes Euro to pay your hotel bill.  I have had that happen maybe 3 - 4 times.

[Nebr.cruiser]

On our cruise last year we spent minimal amounts at each stop--mostly for a coke or small souvenir--but US dollars were accepted everywhere.  Also credit cards, but we did not use them.  We did not stay in a hotel or take local transportation, so not needed.  We used credit cards in a couple of restaurants for a meal.

 

We did independent tours and the tour operators wanted US dollars, new or newer and smaller denominations--not $50's or $100's.  

 

In the Falklands we used pounds for the tour; they would have accepted dollars, but at a price increase.  We used our remaining pounds for a few things bought in shops--dollars would have been accepted, but they didn't really want them.

 

If staying longer in a country we might have gotten some local currency.  The only place that didn't want dollars were small venders along the beach area near Santiago--couldn't buy a drink using dollars there, or probably souvenirs.

[SPacificbound]

It is quoted in USD for your convenience. We have traveled most of South America and have never used USD. We have an ATM card with no fee so we just hit an ATM at a bank.

 

Argentina did have a bank rate, blue rate, and black rate at the time we went to South America. That was in 2015 so have no idea what their currency exchange is now. We were able to exchange a good amount of USD for Argentine pesos at the blue rate. Paying our hotel bill in cash with Argentine pesos instead of USD saved us quite a bit of money.

[MicCanberra]

Beware of the black rate handlers, they tend to be on the streets  constantly saying 'Cambio' -( money exchange). There are some very dodgy looking characters amongst them.

[zqvol]

On 11/10/2018 at 5:02 PM, retrovert said:

This is a newbie question from first-timers to South America. I notice that all the prices I see quoted for hotels and tours in Chile and Argentina, including the private tours arranged on CC, are quoted in US Dollars. It looks like us tourists are expected to pay in USD for everything. Is that right? Are the local currencies used anywhere? And how do visitors deal with the lack of USD cash facilities? Is it necessary to bring a fully stuffed money belt? What happens if we run out?

 

Looking forward to cruising with everyone.

 

You are getting quotes in $USD because you are in the US. You always have the option of paying in local currency. Keep in mind that the currency on board the ship (for most ships) is $USD. If normally get a better price paying in local currency.