Foreign Exchange in South America

[MrsTravelBug]

I am going on a South America cruise (so excited!) with extra days in Brazil and Chile.  None of the 4 currencies I need can be bought ahead from the bank.  In the past I have had trouble using my RBC debit card to obtain cash when abroad (systems down, private ATMs that won’t accept RBC cards etc).  Is it best to take US dollars and exchange it for local currency when I arrive in each country, or can I bring Canadian bills for this?  I hate to lose on the exchange buying American to just exchange at my destination and lose money again.

 

I always have some small US bills on hand but not everyone will accept it and small businesses will not accept credit cards.

Any information would be appreciated.

[Fouremco]

The TD sells both Chilean and Brazilian currencies, and very possibly the other two you need as they sell over 50 foreign currencies. For further information: https://www.td.com/ca/en/personal-banking/solutions/currency-exchange-services

[LHT28]

some malls have an exchange store  

I use this one

https://continentalcurrency.ca/

[gnome12]

My favourite currency exchange company is https://www.calforex.com/en/. The Toronto one is in the Eaton Centre.

[lots-of-km2]

7 hours ago, MrsTravelBug said:

 

Is it best to take US dollars and exchange it for local currency when I arrive in each country, or can I bring Canadian bills for this?  I hate to lose on the exchange buying American to just exchange at my destination and lose money again.

 

I always have some small US bills on hand but not everyone will accept it and small businesses will not accept credit cards.

Any information would be appreciated.

in cash when abroad (systems down, private ATMs that won’t accept RBC cards etc). 

 

Just came back from an extended visit to South America.  Wasn't in Brazil this time, but did hit Peru, Argentina, Chile and Uruguay. 

 

The only place where it makes sense to exchange USD for the local currency if you're going to shop a lot is Argentina, because certain reputable cambios will give you "Blue Dollar" rates which are double (yes, double!) the bank rate.  This is not illegal or black market, but grey area.  If you're curious to know more about this, it's worth a google. In Buenos Aires, Cambio Posadas (Posadas 1562) is a good place to transact at.  Not recommended to deal with hawkers on the street, though, go to a bricks and mortar cambio that is established and has a solid reputation. 

 

Oh, and before I forget, this favourable Blue Dollar rate in Argentina applies to USD only  AFAIK.  Canadian currency doesn't reap these windfall conversion rates.

 

As for Chile and Brazil,  my recommendation is to just use your credit card as much as possible, and don't buy much local currency, if at all.  Yes, you'll have forex fees to pay on your credit card bill, but the exchange rate with a credit card is often competitive with or less than cambios, and you won't be stuck with small bills or coins when you leave.  And you won't have eaten away your money exchanging from Canadian dollars to USD to Chilean Pesos or Brazilian Reals. 

 

Contrary to the expectation of many travellers, many, many small businesses in SA take credit cards, and many are happy to take payment in USD cash. 

 

If you have to have some cash on hand for tipping, it's worth having a lot of US one dollar bills on hand -- but make sure they're in good condition and not worn.  

 

 

Edited February 7, 2023 by lots-of-km2

[CDNPolar]

We just came back from Argentina and we were first suggested to take USD for exactly what the poster above is saying - taking advantage of a "middle" and / or "blue" market.

 

When we were there - this is only an example and not necessarily exact:

 

Bank Rate Home:  1 USD = 150 Pesos

Middle Rate at the Hotel:  1 USD = 280 Pesos

Blue Rate on the Street:  1 USD = 320 Pesos

 

HERE IS WHAT WE FOUND:  

 

We took too little USD and ran out.  We only used the Hotel to exchange because we did not trust the blue market and the risk of counterfeit bills or being short changed.

 

We started to transfer - online - through Western Union CAD money to Argentina.  The transfer takes 5 minutes online and it is complete and you can pick up immediately with your passport for ID.

 

Once you take into account the exchange cost from CAD to USD, then to Pesos, we did better with Western Union's exchange rate from CAD.  We got 250 pesos per Canadian dollar which when you do all the math was better than the double conversion of CAD to USD to Pesos.

 

Western Union offices were like Tim Hortons.  They were everywhere.  

[Ex-Airbalancer]

Some great info ! 

[lots-of-km2]

9 hours ago, CDNPolar said:

We started to transfer - online - through Western Union CAD money to Argentina.

I'm curious -- what does Western Union charge for this?  

[CDNPolar]

21 hours ago, lots-of-km2 said:

I'm curious -- what does Western Union charge for this?  

 

Interesting question.  We have an account for a long time and often send money overseas to family.  We never pay any fee.

 

We transferred smaller amounts three times while in BA Argentina because we did not want to get stuck with Pesos at the end.  The first two times they did not charge us any service fee.  The third time they charged $15.00 CAD and even with that it was a better deal on exchange.

 

One additional thing about exchange...

 

We stayed at the Sheraton and in our online booking the total cost of our 4 nights was $980 USD.  This would have been the equivalent in pesos charged to our credit card, converted to USD and then to CAD.

 

We asked for our total charges in Pesos, and it was $172,000.00 pesos.  This in CAD funds was $700.00, so we saved $280 + the exchange to USD.  In total we saved about $600.00 when all was said an done by paying our hotel bill in Pesos converted from CAD.