An Aussie Goes To Argentina; exchange rate confusion - can anyone help?

[LittleFish1976]

Hi all,

 

I know you're all well travelled and there's been some talk on this board from time to time of South American trips so there must be some knowledge out there that can maybe help me.

 

I worked out recently that there's two exchange rates - one for locals and one for tourists, the tourist one being preferential by a substantial amount (around 100%, I've even read it can be more).

 

I understand that last year that some credit card companies introduced the ability to get the better rate even through use of their cards whereas previously it was just available when changing cash.

 

Has anyone had any experience of this working in practice either by using an Australian credit card and having the tourist exhcnage rate applied there? Or if changing cash, does it have to be USD that you're exchanging in person?

 

I'm going to have a decent sized hotel bill to pay while I'm there so I do need to understand how to pay in the best way properly. 

 

Any help (particularly recent experience since the changes last year) would be gratefully appreciated. I'm leaving on Sunday and now feeling very disorganised.

[MicCanberra]

We are currently in south America, we didn't bother with local currency as we could tap with a credit card ( no international fees) where needed and used USD when cash was required, approx 1000-1200 pesos to the 1USD.

I bought a cap, it was 15,000 pesos, got it for $10USD.

[yarramar]

You will need to do some more research when it comes to Argentina as opposed to other countries in South America. With the new president who was elected in December, things will be different.

This article explains some things. https://edition.cnn.com/2023/12/12/economy/argentina-milei-peso-dollar/index.html

[MicCanberra]

33 minutes ago, MicCanberra said:

We are currently in south America, we didn't bother with local currency as we could tap with a credit card ( no international fees) where needed and used USD when cash was required, approx 1000-1200 pesos to the 1USD.

I bought a cap, it was 15,000 pesos, got it for $10USD.

Meant to say that was in Argentina so far. We head to Chile next week.

[LittleFish1976]

3 minutes ago, MicCanberra said:

Meant to say that was in Argentina so far. We head to Chile next week.

Brilliant. Thanks Mic that's the sort of information I'm looking for. So have you been exchanging USD for pesos or paying directly with USD?

Is your AUD credit card making an exchange rate similar to the so-called 'tourist rate'?

 

[LittleFish1976]

16 minutes ago, yarramar said:

You will need to do some more research when it comes to Argentina as opposed to other countries in South America. With the new president who was elected in December, things will be different.

This article explains some things. https://edition.cnn.com/2023/12/12/economy/argentina-milei-peso-dollar/index.html

Yikes, that's one hell of a devaluation. I'll read the article again more thoroughly in the morning when the brain will be firing on more cylinders hopefully. Thanks very much for the link to the article.

[MicCanberra]

1 hour ago, LittleFish1976 said:

Brilliant. Thanks Mic that's the sort of information I'm looking for. So have you been exchanging USD for pesos or paying directly with USD?

Is your AUD credit card making an exchange rate similar to the so-called 'tourist rate'?

 

Using USD directly, I think they prefer it as it doesn't get affected by their inflation.

Not sure what the tourist rate was but we thought it was reasonable - $43.20 for a bill of 32,200 pesos in a restaurant.

[Bizziecruzer]

Suggest you get yourself a no fee credit card. We have a Latitude Card (previously known as 28 degrees)  It's great. No fees charges etc. Great daily exchange rate.

[MicCanberra]

1 hour ago, Bizziecruzer said:

Suggest you get yourself a no fee credit card. We have a Latitude Card (previously known as 28 degrees)  It's great. No fees charges etc. Great daily exchange rate.

they work well but there are others as well

[yarramar]

1 hour ago, Bizziecruzer said:

Suggest you get yourself a no fee credit card. We have a Latitude Card (previously known as 28 degrees)  It's great. No fees charges etc. Great daily exchange rate.

If USD is a preferable way of spending in Argentina, maybe a debit card that is "loaded" with different currencies i.e. USD, is the way to go. Safer than carrying cash. A credit card will exchange in pesos

[cruiser3775]

I was in Argentina in December, just five days after the massive devaluation of the peso. Things were in a state of flux then, and may have steadied a little since then.  US dollars were acceptable in many places, like restaurants and larger shops.  But buying them in advance in exchange for AUD will involve a loss anyway.    You can exchange AUD in good condition at a Cambio (a currency exchange) once you arrive. You hotel would recommend a safe one.

Taxis need pesos, and don't use a credit card in a taxi - there are too many scammers. You need pesos at many stalls in markets. Try to use taxis with meters.

One hint is to pay your hotel bill with a foreign credit card. This allows you to ask the hotel to deduct the Value Added Tax of 20% from the bill.  

If you look at the Argentina forum on Trip Advisor, you will see this question is asked regularly, and can get some up to date advice.

[LittleFish1976]

4 hours ago, Bizziecruzer said:

Suggest you get yourself a no fee credit card. We have a Latitude Card (previously known as 28 degrees)  It's great. No fees charges etc. Great daily exchange rate.

Good advice but I've left it too late I'm afraid. Got a Wise travel card the other day which has suspended Arg pesos exchange.

[LittleFish1976]

2 hours ago, yarramar said:

If USD is a preferable way of spending in Argentina, maybe a debit card that is "loaded" with different currencies i.e. USD, is the way to go. Safer than carrying cash. A credit card will exchange in pesos

THis sounds like a great idea and I'll be able to do that with the travel card I've just got. Thank you for the suggestion.

[LittleFish1976]

1 hour ago, cruiser3775 said:

I was in Argentina in December, just five days after the massive devaluation of the peso. Things were in a state of flux then, and may have steadied a little since then.  US dollars were acceptable in many places, like restaurants and larger shops.  But buying them in advance in exchange for AUD will involve a loss anyway.    You can exchange AUD in good condition at a Cambio (a currency exchange) once you arrive. You hotel would recommend a safe one.

Taxis need pesos, and don't use a credit card in a taxi - there are too many scammers. You need pesos at many stalls in markets. Try to use taxis with meters.

One hint is to pay your hotel bill with a foreign credit card. This allows you to ask the hotel to deduct the Value Added Tax of 20% from the bill.  

If you look at the Argentina forum on Trip Advisor, you will see this question is asked regularly, and can get some up to date advice.

Thanks gor this advice. I hear conflicting advice over whether to get pesos on arrival or not. If I can't use a card in the taxi from the airport I'll definitely need some sort of cash though. I'll get some USD before I go and get some pesos at the airport I guess.

 

Re: paying the hotel bill; I assume that an Australian card gets the advantageous exchange rate which Visa and Mastercard have introduced (the info I've read only mentions US cards and maybe EU ones as well).

 

Thanks for the tip about the Trip Advisor forum - I'll check it out.

 

[cheznandy]

Can't help with recent info as we were last in Argentina in 2006!

but, if you have a Qantas FF card, it is a travel money card, just need to activate online and load currency. We haven't used it that way as we travel with our UBank direct debit for cash and 28Degrees/Lattitude Credit Card, but I would probably consider loading it with local currency for Argentina considering the money situation.

[LittleFish1976]

2 hours ago, cheznandy said:

Can't help with recent info as we were last in Argentina in 2006!

but, if you have a Qantas FF card, it is a travel money card, just need to activate online and load currency. We haven't used it that way as we travel with our UBank direct debit for cash and 28Degrees/Lattitude Credit Card, but I would probably consider loading it with local currency for Argentina considering the money situation.

 

Didn't know that about the QFF card. MIne's as old as the hills and I'm sure it doesn't have a chip. Just googled the card and they don't allow Argentinian pesos I'm afraid but I do have the Wise card and have loaded some USD onto it so that's a good start.

[LittleFish1976]

Thanks everyone for your great suggestions and information, it's greatly appreciated. I'm leaving on Sunday. If I can muster some tech savvy I'll post a picture or two when I'm at sea in Antarctica.

[cheznandy]

2 minutes ago, LittleFish1976 said:

Thanks everyone for your great suggestions and information, it's greatly appreciated. I'm leaving on Sunday. If I can muster some tech savvy I'll post a picture or two when I'm at sea in Antarctica.

Have a great trip!!

[arxcards]

Sounds fantastic. Enjoy.

[MicCanberra]

I suppose it really depends on how long you will be in Argentina,  where you go and what and where you plan to make purchases. 

I found their was no need to have pesos at all.

[LittleFish1976]

5 minutes ago, MicCanberra said:

I suppose it really depends on how long you will be in Argentina,  where you go and what and where you plan to make purchases. 

I found their was no need to have pesos at all.

 

Not even for cabs? We'll be there for 6 days before heading down to Ushuaia for the ship and then another day/night on the way back. Expenditure will be normal things like hotel, meals, coffees and ice creams, cooking lesson, tango show, museum entries and cabs. SMall purchases here and there also maybe of souvenirs. I would assume if pesos are needed it would be for the small coffee/snack type things in smaller kiosks or shops/ cafes but also as someone pointed out above, for cabs.

[MicCanberra]

Sounds like most places will take a card, the rest will take cash and  USD is likely preferable as long as you are a bit flexible. You can always exchange some USD for pesos once there. As for taxis, negotiate first use your card or even organise a transfer from the airport, viator or get your guide have some reasonable ones.

[cruiser3775]

Organise a paid transfer from the airport to your hotel in advance so you don't have to worry about paying after a long flight. You can also ask your hotel for a small cash advance in pesos on your first day, and have them add it to your account.  You can then use that to pay for a taxi to somewhere where you can exchange money.

When I was there in December, the use of US cash was sporadic. There were many places that would not accept it. I had an awkward moment in a cafe/bar when I tried to pay for a beer. They wouldn't take dollars, I didn't have pesos. They were deeply suspicious of my credit card, but eventually they put it in their machine, and to their surprise it worked, though it demanded my PIN, for a transaction of about $A3.     If you have some US cash, then buy something with a $20 note, and you will get the change in pesos.