Money In Argentina: How To Get The Best Rates In 2024
If you want to save money in Argentina, then you’ve come to the right place. You will be spending a lot more if you don’t take advantage of some of the loopholes which I’ll cover in this post.
Argentina has one of the world’s most volatile economies. Inflation has skyrocketed and the country has become incredibly challenging for locals to survive in. Tourists however were able to get almost everything they needed in the country for half the price up until very recently.
Radical policies of the new president Javier Milei have made the country more expensive than before, but it is still possible to save a lot of money here with the right strategies.
Read on to find out how you can make the most of your pesos during your trip to Argentina.
What Is The Economic And Currency Situation In Argentina?
From 1998-2002 Argentina experienced a great depression which led to a series of negative outcomes, most notably, the peso exchange rate no longer being linked to the US dollar. The economy shrank by over a quarter in this time and plunged over half of Argentinians into poverty.
Over the next few years, the economy began to recover and poverty gradually fell. However, things were soon to become a lot worse once again from 2015 onwards.
New president Mauricio Macri lifted foreign currency restrictions which devalued the peso by a third, and inflation shot up over the next few months. The economy never recovered and inflation skyrocketed further over the next few years hitting 100% in 2023 and surpassing 250% in January 2024. Milei contributed heavily to this by removing price controls in December 2023 which meant restaurants and shops doubled prices within days, signalling the end of Argentina as an ultra cheap tourist destination.
I won’t bore you with all the details, you can find an economics blog for that, but this has had a significant impact on Argentina for both tourists and locals alike. It has been bad news for locals, who have struggled to afford basic supplies. Yet good news for tourists who have been able to benefit from favourable exchange rates.
US dollars became like gold dust in Argentina with locals desperate to get hold of them instead of virtually worthless pesos. This led to a dual economy opening up which favoured tourists greatly…
What Is The Blue Dollar?
As the economy worsened, a black market economy emerged. A decade ago, US$1 was worth 8 pesos, now it gets you 843 pesos. And I guarantee this information will be outdated by the time you read it, even if you read the day after posting! The Blue Dollar or “Dolar Blue” sprung up offering much more favourable rates than the official exchange rate. When I first visited Argentina in September 2022, the official exchange rate was US$ = 150 pesos, yet with the Blue Dollar I could get 280 pesos per dollar on the black market.
Whilst the practice of exchanging on the black market (or “blue market” as some call it) is illegal, punishments are not enforced. The existence of cuevas (black market exchange rooms, or “caves” when translated literally) is an open secret and literally every tourist I’ve met in the last couple of years used them to receive local currency.
If you come from a law-abiding country with no illegal practices that have become normalised, then Argentina may come as a slight culture shock to you. However you have zero reason to fear using the Blue Market. I guarantee with certainty that you will not get in trouble for it. Blue Dollar transactions are as common as drinking water or eating food in Argentina.
Unfortunately Milei’s reforms have led to a massive dip in the Blue Dollar, with this exchange method providing you with just a 25% increase on your cash compared to the official rate, as opposed to almost 100% prior to September 2023.
The Blue Dollar rate changes rapidly and sometimes drastically, check out the Blue Dollar website for current rates.
If you’re wondering where the “Blue Dollar” gets its name, it is due to the blue security strip on newer $100 bills. Newer bills are preferred to older ones by the Argentine people due to their security, and the belief newer notes are harder to create counterfeit copies of.
The Different Exchange Rates In Argentina Explained
Quite frankly, exchange rates in Argentina are a bit of a mess. Tourists should only pay attention to a small handful, which I will address in a moment, but in the last couple of years new rates have popped up for all sorts of reasons, including some pretty bizarre ones.
The “Qatar Dollar” was introduced when thousands of football supporters left Argentina to support their country at the 2022 Qatar World Cup. The “Coldplay Dollar” refers to a 30% surcharge the government used to hit concert promoters with if they pay musicians in foreign currencies rather than the pesky peso. There are numerous others, but this just gives you an idea of how outlandish the Argentine currency situation has become. Fortunately, you don’t need to know about these. Only four exchange rates are relevant as of March 2024.
When you come to exchange money in Argentina however, these are the rates you should pay attention to:
The Official Rate
Obviously the official exchange rates are the most important to keep an eye on. To work out how to get the most money in Argentina, compare the other relevant rates to this one and see what percentage increase you can get. If it’s around the 25% mark, which is the case as of March 2024, then Argentina can be pretty expensive. If it’s nearer 100% as it was a few months beforehand, then this is a bargain country to travel to. Unfortunately the current situation means it no longer qualifies as one of the cheapest countries in Latin America.
The Blue Dollar (Dolar Blue)
Sorry Coldplay Dollar, but the most important unofficial exchange rate to keep an eye on is the blue rate. As previously mentioned, you can trade cash at nearby cuevas and receive up to double the official rate, depending on the market rates at the time.
The CCL Dollar
The contado con liqui (CCL) dollar is the rate generally used by Western Union. Before visiting Argentina, I was told by most people to use Western Union to withdraw money in the country in order to “double your money”. The CCL dollar follows similar rates to the Dolar Blue. Therefore you no longer double your money with this method. However it is still far better than the official rate. Western Union fees may make the Blue Dollar a slightly better option financially. However, if you don’t wish to carry large quantities of foreign currency, then the CCL dollar is the best option for you. Send money to Argentina before arriving and you can take advantage of this. Or ask a friend or family member to do a money transfer to Argentina which you can collect.
The MEP Dollar
When I went to Argentina in late 2022, paying with a credit or debit card was a big no-no. You would be paying the official rate. In other words, double the Blue Dollar rate at the time. However, the government introduced a new rate a couple of months later which brought foreign card payments almost in line with the Blue Dollar. Use Visa or Mastercard for transactions in the country and you will be paying the MEP rate. It may not be as favourable as our good friend, the Blue Dollar, but the convenience of being able to pay with your card and not carry a rucksack full of cash (not an exaggeration) may be worth the minor rate differential.
Do not use American Express in Argentina. Whilst they do charge the MEP rate nowadays, they will initially charge the official rate and refund you weeks or even months later. AMEX is also not as widely accepted in Argentina.
Which Exchange Rate Is Best For Me In Argentina?
In general, the Blue Dollar is the best rate to ensure you get the most money in Argentina. However, you will be left with a massive wad of cash which may at best be an inconvenience, and at worst, a security risk.
For convenience, the MEP dollar offers the best rate. You can pay by card, don’t have to carry large wads of cash, and the rates are still very favourable. However, not everywhere in Argentina takes card, which means that you should carry a reasonable amount of cash anyway. Large chains and major shops or restaurants will generally take card. Smaller places most likely will not.
If you don’t mind carrying a lot of pesos, but would rather not have a significant amount of dollars on you, the CCL dollar could be your best option. I would say you are better off getting cash from cuevas (Blue Dollar) and paying by card (MEP Dollar). Especially since Western Union will almost always charge a fee for its services. But the CCL Dollar certainly has its uses.
Avoid paying the official rate at all costs. Avoid withdrawing money from ATMs as they charge very high fees. Some charge as much as $10 a day. Now I thought Chile was bad! But Chilean fees were “only” around $5 per transaction. Maybe one day I’ll write about the worst countries for ATM fees. Chile and Guatemala would be right up there, but Argentina would be number one from the 68+ countries I’ve visited at the time of writing. Anyway, I sidetrack slightly. You should also avoid ATMs because the daily withdrawal limit is very low and you will need to make almost daily withdrawals to receive any significant amount of cash. This will hammer you with constant high fees, and be a major inconvenience.
How To Exchange Money In Argentina (Cuevas)
Since cuevas are technically illegal (well, they are illegal, but no one will try to shut them down and you won’t get in trouble for using them), they aren’t always easy to find. You won’t find cuevas advertising far and wide in most places. However, they are the worst kept secret in Argentina, so it’s still pretty easy to track them down nonetheless.
Ask staff at your hostel or hotel, or ask your Airbnb host where the nearest cueva is. In a remote village you may struggle to find one, however they are very easy to find in all the major cities. I’ve personally used cuevas in Mendoza, Cordoba and Buenos Aires, so I know how easy it is to exchange money in these cities.
Buenos Aires is perhaps the only city where the location of cuevas is very well known. You need to head to Florida Street (Calle Florida) and listen out for the guys (known as “arbolitos”) gently whispering “cambio, cambio, cambio” (“change, change, change” in English) as you walk past.
Ask what their rates are, and get clear answers as to whether these differ with older bills and smaller denominations of US dollars (they often do). You will need to know some basic Spanish in most cases. Try and go with a local if you don’t know any, to ensure you get the best deal.
It is also worth noting that some other currencies (such as euros) may be accepted in some cuevas, and you may even get a rate comparable to the Blue Dollar.
If you’re happy with the rates offered by the arbolitos, follow them into their cueva. Don’t worry, these places may look shady and yes, they are technically illegal (again I’ll reiterate, you won’t get in trouble for using them and will come out a lot worse financially if you don’t) but they are safe and certainly one of the best ways to exchange money in Argentina.
Make sure you are clear with exactly how much you will give them, how much you will receive, and exactly what rate they are using before going through with the exchange. Count your pesos after the transaction, but before leaving the cueva, to ensure you have received the right amount.
Fortunately, Argentine cuevas rip up the rulebook when it comes to shady black market currency exchanges with people on the streets. Anywhere else, this sort of arrangement is exactly how to walk straight into a massive scam. Luckily for you, cuevas are safe and fair in 99% of situations. Word of mouth from locals (especially hostel or hotel staff) is the best way to ensure you go to a reputable cueva and avoid ending up in the unfortunate 1% who may get ripped off.
Please note, cuevas generally do not accept credit or debit cards. They are cash-only exchange places.
Tips For Exchanging Money in Argentina
My first tip for exchanging money in Argentina is to bring US$100 bills, and lots of them! You never know when you could run into trouble with your credit card abroad. Even if things run smoothly, many places in the country will not accept credit cards. It is always wise to have a significant amount of cash as a backup. You will receive better rates for higher denominations of the sought-after US dollar. Therefore one $100 note is worth more than five $20 bills.
Make sure US dollars are new and in perfect condition. For starters, new bills with the blue strip (hence the name, “Blue Dollar”) are preferred to older bills. This is because newer bills are seen as more secure, with older ones believed to be easier to replicate as counterfeits. Bills in a bad condition, or even with a tiny tear will often be rejected when used for payments. Therefore cuevas will rarely accept them for the same reasons.
Bring a rucksack with a padlock. This is safety advice I would recommend to anyone travelling through Latin America, even though Argentina is one of the safest countries in the region. However it is more important in a country where you will be carrying enough cash to fill a small handbag, even for a 2-3 week trip. This is the only country I’ve been to where I had more cash than space in my pockets. By careful carrying so much money on you, even if the overall value is not high.
Avoid ATMs at all costs. As mentioned earlier, the high fees and low withdrawal amounts will sting you hard. The blue market, Western Union and card payments are all much better options.
Which Exchange Rate Do Hotels And Hostels Use In Argentina?
If you book via a popular online platform such as Booking, the prices listed will generally be “official rate” prices, however you can often pay a lot less in practice. For example, a hotel may be listed at $100 for one night. Yet in most cases you will have the opportunity to pay in pesos when you turn up to the hotel. This means paying around $75-80 if you use the Blue Dollar, CCL or MEP rate.
I stayed in 7 different places whilst visiting Argentina, and 6 of them functioned in this way. Only Milhouse Hostel in Buenos Aires insisted I pay the official rate. And this was just the tip of the iceberg in terms of problems I had at that place… Not the best place I’ve every stayed to put it very, very lightly…
Perhaps the best way of ensuring a lower rate is to contact hotels, hostels and Airbnb hosts in advance and confirm exactly what their policies are. This way you can be sure you won’t get a nasty surprise when it comes to paying your hotel bill.
Does Uber Use The Official Exchange Rate?
In 2022 Uber used the official rate, meaning it was a terrible idea to pay via card. However, as credit and debit cards began to charge the MEP rate, Uber caught up and started charging this too.
Uber does also give the option to pay by cash. With this option you can pay in pesos which you should have received using one of the lower rates.
Money In Argentina: A Glossary Of The Terms You Need To Know
- Arbolitos: People on the streets who will approach you offering to exchange money at the Blue Dollar rate
- Blue Dollar (Dolar Blue): The unofficial exchange rate in Argentina which gets you a lot more money than the official rate
- Cambio: “Change” in English. If someone approaches you in the street with the word “cambio” it generally means they are an arbolito offering to exchange money with you – generally in a cueva at the Blue Dollar rate
- CCL Dollar: The exchange rate used by Western Union
- Cueva: A hidden room off the streets where arbolitos will take you to exchange money. They look a little shady but are safe if you play by the rules
- Pesos: The currency used in Argentina. It becomes less and less valuable as time goes on
- MEP Dollar: The credit or debit card rate which is similar to the Blue Dollar rate. Pay with Visa or Mastercard to get this rate
- Western Union: A money exchange service that is used to send or receive money from abroad. They use the CCL Dollar rate which can save you a fair bit of money, at least compared to ATMs and the official exchange rate
- US Dollars (USD): The currency used in the USA which is highly desired by locals in Argentina. Newer and larger denominations of US dollar bills are worth more than older bills and lower denominations
Important Information On Exchange Rates And Money In Argentina
Please note that due to the volatility of the Argentine economy, information does change rapidly. And exchange rates in particular can change dramatically. Therefore you should always research the latest rates and prices. I recommend the Blue Dollar website to keep track of the most important rates before travelling to the country.
Argentina is an incredible country, with the world’s best steak and some wonderful places from Iguazu Falls, to Villa General Belgrano, to La Boca in Buenos Aires, to Patagonia and so much more. I’d highly recommend visiting, even if the currency does become more costly for tourists as the weeks and months go on. You won’t regret it.
