Let’s talk cash

Post by Ella

Local currency in Argentina is ARS (Argentine pesos, but also uses the $ symbol which is sometimes confusing).

In Argentina, there are several currency exchange rates  the official (government/bank) rate, the market rate, the blue dollar rate, the rate your credit card will give you (and it’s different for different cards).

Example rates (about a week ago) for one US dollar, you get the number of pesos shown below

Official (bank and ATMS) 841 

MEP 1012 

Visa 966

Blue 990 

Western Union 1080

Before the change in the Argentine government in December 2023,  there was a huge gap between the highest and lowest rates (200 or so pesos to the dollar was the official rate) and it behoved travelers to search out the best rate. After the election of Melei in December 2023, the peso was wildly devalued (as an economic strategy), and prices shot up everywhere in Argentina. As tourists, we can’t be blind to the fact that Argentinians lost a lot of money in this transition. 

Now, the peso – or at least the exchange rates have begun to stabilize and the gap between the various rates has narrowed. Nonetheless, if you are a tourist on a tight budget, there is still a lot of consternation about how and where to exchange your money to get the best rates.

Right now, you can get a pretty good rate using your credit card for purchases. Still, even if you are willing to absorb the credit card fees (many vendors are purported to add an extra 10%-20% to the bill if you pay by card), you still need cash for tips and smaller vendors, food stalls – you know, all the stuff that makes traveling more of an adventure.

How does one get cash?  Our usual cash strategy (in our travels elsewhere) has been to stop at an ATM at the airport when we land and withdraw some amount of cash in local currency. The exchange rate (singular) of the day generally prevailed, fees were minimal and we were happy. But this is Argentina. First, most ATMs here will only dispense limited cash. Like 20,000 to 25,000 Argentine pesos. That’s maybe US$20. And the ATM fee can be $5 – $10.

Then there are the cambios. The guys on the street whispering “cambio” (change) as you walk by. They are usually safe and legitimate (so we are told, although we are also cautioned – don’t go alone). You follow one into the back room of a shop and haggle a little on the exchange rate. Walk out with a wad of pesos. But you’d best have crisp, brand new, unmarked US$100 bills to exchange. Anything else might be rejected or the exchange rate offered will not be the best.  

Another option is Western Union. Probably the “safest” option. You can set up an account and send money to yourself to be picked up by you as cash, at a local WU office in Argentina. WU offers favorable exchange rates but charges a hefty fee for the service. Also, it is not uncommon for the smaller offices to run out of cash or you may end up waiting in a long queue. There are other apps (like Remitly) for sending cash to yourself but there are fewer locations for pick-up than Western Union.

I said a “wad” of cash earlier and I’m not kidding. Although the exchange rate still fluctuates a lot, a good rate right now is somewhere in the ballpark of US$1.00 = ARS1,000.  The largest banknote in circulation right now is ARS1,000. Yep. If you exchange US$100, and that’s probably the minimum amount you’d want to exchange), you get a stack of cash back. It gets worse because it isn’t likely you’ll get only ARS1,000 banknotes. More common are the ARS500’s and ARS200’s. Do the math.

You might be wondering how we managed to get some cash on arrival. No problemo. Abel, with whom I’d arranged a ride from the airport, was also our cambio. Turns out, there is a big need for airport drivers who can also change money. I gave him a new US$100.00 bill. I got a stack of pesos.