Argentina’s economic situation has been anything but stable over the past few decades, leading to a complex and sometimes confusing monetary landscape for travelers.
Although Argentina has been on a wild inflationary ride, this does not mean that everything is extremely cheap. Clothing and supermarket goods, for example, are priced very similarly to the U.S.
Nevertheless, Argentina is still an affordable destination for most travelers coming from Europe and North America. You’ll especially find that things like public transportation and taxis, steakhouses, and entertainment are much more affordable.
If you’re planning a trip, understanding how to manage your money in Argentina is key to making the most of your experience—and to ensuring you don’t pay more than you need to.
On my yearly visits to Argentina I’ve had to navigate this changing environment as a traveler, and have learned some tips along the way.
In this post, we’ll dive into why Argentina has multiple exchange rates, what cuevas are and how to use them, and how to use a U.S. credit card in the country.
Understanding Argentina’s Multiple Exchange Rates
When you arrive in Argentina, you’ll quickly realize that the official exchange rate for the Argentine peso (ARS) is just one of many.
The Argentine government tightly controls the official exchange rate, which is the rate you’ll find at banks and ATMs. However, because of these controls, the official rate is often much less favorable than the rates available through other means.
One of the most well-known alternative rates is the “blue dollar” (dolar blue) rate. The blue dollar rate emerged as a result of currency controls that limit the amount of U.S. dollars Argentines can purchase legally.
To get around these restrictions, a parallel market for currency exchange developed, where U.S. dollars are exchanged for pesos at a much higher rate than the official one.
As of now, the difference between the official rate and the blue dollar rate can be significant, sometimes as much as 50% or more.
This means that if you exchange your money at the official rate, you could be missing out on a lot of value. For this reason, many travelers choose to exchange their money at the blue dollar rate to get more pesos for their dollars.
There are also other exchange rates you might hear about:
- the “CCL” (Contado con Liquidación) rate, which the rate Western Union uses, and
- the “MEP” (Mercado Electrónico de Pagos) rate, which are used in financial markets and foreign Visa and Mastercard credit cards.
There are several other exchange rates, but these are the most relevant to the average traveler.
Getting Cash in Argentina
Getting cash in most countries is fairly straightforward: you land, go to your nearest ATM, and voilà! You have cash.
While you can do this in Argentina, you will be limited in the amount you can take out, and you’ll be doing so at the least favorable exchange rate, meaning you’re leaving money on the table.
Here I’ll outline the three main ways you can get pesos in Argentina: using cuevas to exchange money, Western Union for transfers, and banks and ATMs for withdrawals.
What Are Cuevas, and How Do You Use Them?
My preferred way to get Argentine pesos is to bring dollars with me, and exchange them bit by bit at a cueva.
A cueva, literally meaning “cave” in Spanish, is a slang term for informal currency exchange businesses that operate outside the official banking system. These businesses are where you can exchange your dollars for pesos at the blue dollar rate.
Cuevas are common in major cities like Buenos Aires, and while they operate in a legal gray area, they are widely used by locals and tourists alike. The process of using a cueva is fairly straightforward:
- Finding a Cueva: Cuevas are often located in busy commercial areas. One of the cuevas I’ve used most often is called Cambio Baires. They have multiple locations, the rates are usually pretty fair, and the lines not too long.
TIP: If you type “casa de cambio” into google maps, you’ll see several options. Check reviews before you go!
- Exchanging Money: Once inside the cueva, the process is simple. You hand over your U.S. dollars, and in return, you receive pesos at the blue dollar “sell” rate. Transactions are typically quick and hassle-free, though it’s always a good idea to count your money carefully before leaving.
TIP: Cuevas are very picky about the bills they accept. You will only get the full exchange rate for unmarked $100 bills. Any other bill will be traded at a discounted rate!
- Safety Tips: While most cuevas are reputable, it’s important to be careful. Stick to larger establishments, and avoid exchanging large amounts of money in one go.
Using a cueva can feel a bit strange at first, especially if you’re not used to operating outside of official channels. But in Argentina, it’s a common practice, and as long as you’re careful, it can save you a significant amount of money.
Western Union
Western Union is often used for direct bank transfers, but some locations also allow currency exchange. They offer a pretty favorable rate, using the CCL exchange rate as reference, which usually isn’t too far off the blue dollar.
The benefit of using Western Union is that you don’t have to bring as many US dollars with you to Argentina, given that you can use your credit or debit card wires or bank transfers to get cash. It is also helpful that there are many locations in Buenos Aires and other cities.
The drawback of using Western Union is that you will need to pay fees to use their service, making it less advantageous than using the cuevas.
While we have used Western Union before, our preference is going through the cuevas or relatives to get cash.
ATMs
In a pinch, you can get cash at banks and ATMs but these often have high fees and the amount you can take out a day is capped!
I don’t recommend you use ATMs here.
Using U.S. Credit Cards in Argentina
While cash is king in many parts of Argentina, especially when it comes to smaller merchants, as of 2022 you can use your Visa or Mastercard credit card and get a favorable exchange rate..
These credit cards offer rates that closely follow the MEP rate. Keep in mind that this rate is usually slightly less favorable than the blue dollar (but very close), and varies constantly. You can check the expected exchange rate here.
This change has been tremendously helpful for tourists. Not only does it mean you don’t have to bring as much cash to Argentina, but it also makes using app-based services, like Uber or Rappi (local delivery service) a no-brainer.
TIP: Make sure you’re using a card with no foreign transaction fees!
Tips for Managing Your Money in Argentina
Navigating Argentina’s complex monetary system can be a bit tricky, but with the right approach, you can make your money go much further. Here are a few additional tips to help you manage your money while traveling in Argentina:
- Bring crisp $100 USD bills. You can exchange smaller bills and old and marked-up bills, but expect to get a less favorable exchange rate.
- Carry a mix of cash and cards: While using cuevas to get the blue dollar rate is a great way to stretch your budget, it’s still a good idea to have a credit card on hand for larger purchases or in case of emergencies. Just be aware of the exchange rate you’re getting with each method.
- Check Exchange Rates: Exchange rates in Argentina can fluctuate rapidly, so it’s important to stay informed about the current rates before you exchange money. Websites like DolarHoy.com provide up-to-date information on the various exchange rates in Argentina, including the blue dollar rate.
- Consider safety: While Argentina is generally safe for travelers, it’s always a good idea to be cautious when carrying large amounts of cash. Use a money belt or hidden pouch to keep your cash secure, and be discreet when exchanging money.
- Be prepared for inflation: Argentina’s high inflation rate means that prices can increase quickly, so be prepared for some price fluctuations during your trip.
- Exchange money in large cities: This isn’t a must, but smaller cities have fewer options for exchanging money, and they usually cap you at a lower exchange amount.
Final Thoughts
Visiting Argentina is such a unique experience, and navigating the country’s monetary landscape is just part of it!
While the multiple exchange rates and the use of cuevas might seem complicated at first, they’re actually an opportunity to stretch your travel budget and make the most of your time in this incredible country.
So go ahead, enjoy a tango show in Buenos Aires, hike the stunning trails of Patagonia, and indulge in some of the best steak and wine you’ll ever taste—all without breaking the bank.
Do you have any other questions about money in Argentina? Leave me a comment!
Planning a trip to Argentina? Read more here
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