Argentina ranks up among my favorite countries in the world and I have visited many times, but it is not without its fair share of problems.
Since the early 2000’s Argentina’s economy has been in the toilet, the country appearing to lurch from economic crisis to another, some of them self-inflicted. This has led to, amongst other things, rampant inflation – sitting at around 95%/ annum at the time of publication.
This rampant inflation means that an Argentine workers’ pay will have less buying power next week which leads to some crazy situations. For example, if you were to purchase a new car in Argentina today and sold it exactly one year later, you would actually get a better price for your car than what you paid for it due to inflation.
Situations like this have led locals to look for a way to stabilize their finances and their purchasing power, this is where the “Blue dollar” steps in. The Blue dollar is actually the black market rate of pesos offered for every US dollar. Because the US dollar is in such demand in Argentina, locals will pay substantially more than the official, government mandated exchange rate.
Money changers
Accessing the Blue dollar can be easy when you know how however it’s not always straightforward for the uninitiated. In Argentina’s lively capital, Buenos Aires, the simplest way to access the Blue dollar is to head down to Av Florida and ask the days exchange rate from one of the many touts offering “Cambio dolares”.
Once upon a time there was substantial risk attached to using these money changes. Scams such as handing over high-quality counterfeit notes were all too common. Now, because the largest note in circulation is 1000 peso, or around $4 USD at the official exchange rate, it’s simply not cost effective to make fake notes anymore.
Now the biggest risk is being short changed slightly. At the time of publication, the official exchange rate was ARS 232 p to 1 USD. On our visit in late May, early June 2023 we averaged a whopping 475ARS for every USD. This was paying with a nice, crisp, $100 USD note.
On one occasion the tout managed to slip in one less 1000 peso note, not a big deal really. To be extra careful you could favor money changers that have cash counting machines, as this will be accurate.
Western Union
Another was to access the blue dollar is to either change your USD at one of the many Western Union shops littered across Buenos Aires and right across the country. The exchange rate was not as good as the street price but it was better than the official rate. You can also use WU to wire yourself some USD to exchange for blue dollars.
Credit & debit cards
Using debit cards will see you paying for your purchase at the official exchange rate and it will be worse again if you attempt to withdraw cash from an ATM due to fees attached, so you probably want to keep your debit card in your wallet.
One thing we learned on the ground was that using a foreign credit card will get you far better than the official exchange rate. On our first day in Argentina, I purchased a Claro SIM for my phone and the price was ARS 5000p. Multiplying the ARS/AUD exchange rate of ARS 154/AUD I expected to pay around $32 AUD for the SIM. Paying with my Aussie CC I actually paid $17.93 AUD to get connected, a large saving even after any foreign exchange fees your bank may charge.
Conclusion
Argentina has changed in many ways since my first visit in 2003. Purely from a money point of view, cash is not a vital as it once was for a visitor here. During our stay it was mostly small coffee shops who insisted on cash, cards were accepted anywhere else.
Many people feel uncomfortable dealing directly with touts and the “black market” and I can totally understand this. For you the easiest option for your travels in Argentina is to simple pay with your Aussie credit card.