Argentina Money Guide: Essentials

Argentina’s financial landscape is unique, shaped by economic volatility, currency controls, and a dual-currency system. Understanding how money works in Argentina is crucial for travelers, expats, and anyone doing business there. This guide covers the essentials.

The Argentine Peso (ARS)

The official currency is the Argentine Peso (ARS). Banknotes come in denominations of 20, 50, 100, 200, 500, 1,000, and 2,000 pesos. Coins are available in 1, 2, 5, 10, and 50 pesos.

Due to high inflation (often exceeding 100% annually), prices change frequently. Always check current exchange rates and prices.

The Blue Dollar (Dólar Blue)

Argentina operates a dual-currency system. The official exchange rate (set by the government) is often much lower than the informal “blue dollar” rate, which is widely used in cash transactions.

Exchange USD for pesos on the informal market (ask locals or check reliable sources like Dólar Blue websites) to get significantly more pesos for your money. Avoid exchanging large sums at banks or official exchange offices.

Cash is King

Cash is the preferred payment method, especially for small businesses, taxis, and markets. Many places do not accept credit cards, or if they do, they may charge 10% extra fees.

Always carry small bills (100s and 200s) as change can be hard to come by for larger notes like 1,000 or 2,000 pesos.

Credit Cards and Foreign Currency

• Credit cards are accepted in larger establishments, but transactions are processed at the official exchange rate, which is less favorable than the blue dollar rate.
• Some businesses offer discounts for cash payments (efectivo) to avoid card fees.
• If using a foreign card, check if your bank charges international transaction fees.

ATMs and Banking

ATMs are widely available but often have low withdrawal limits (around 20,000–40,000 pesos per transaction) and high fees. You may need to make multiple withdrawals to get enough cash.

Some ATMs dispense USD, but this is rare and often comes with restrictions.

Money Exchange

Finding Reliable Exchange Spots

Banks and official ‘Casa de Cambio’ are your safest bets for exchanging currency. Street dealers might offer tempting rates, but they’re as reliable as a chocolate teapot.

Airport Exchange: Yay or Nay?

Airport exchanges might be convenient, but they offer rates that could make even a spendthrift weep. Use them only if necessary.

The Exchange Rate Quandary: Official vs. Blue Dollar

In early 2024, the blue dollar rate sits higher than the official rate. While banks and ATMs operate at the official rate, you might hear whispers of the ‘blue rate’ in more clandestine corners. Websites like dolarhoy.com keep you updated on these fluctuating rates.

Western Union: A Tourist’s Secret Weapon

Western Union transfers can offer rates close to the blue dollar, especially in Buenos Aires. In smaller cities, though, be prepared for long lines and transaction limits.

Location Matters: City vs. Rural Areas

In rural areas, ATMs can be as scarce as a desert mirage (like in El Chaltén and Calafate). Consider using cash-back services at local groceries or gas stations, which generally have a 10% fee – more reasonable than the ATM charges.

Inflation and Budgeting

Inflation is a constant factor in Argentina. Prices for goods and services can rise significantly within weeks.

Budget generously and account for potential price increases during your stay.

For long-term stays, consider keeping some savings in USD to protect against peso devaluation.

Tipping and Service Charges

Tipping is customary but not mandatory. In restaurants, a 10% tip is standard. For taxis, rounding up the fare is appreciated.
Some restaurants add a cubierto (cover charge) to the bill, which is not a tip but a service fee.

• Restaurants and Bars: About 10% of the bill is customary for good service. Paying this in cash is often appreciated.
• Guides: 10-15% is a good rule of thumb
• Bus Luggage Handling: Upon exiting the bus, you’ll find volunteers assisting with unloading luggage. A small tip of 500 to 1000 pesos is appreciated.
• Taxis and Personal Services: For taxi drivers, rounding up the fare is a small gesture that goes a long way.

Taxes and Refunds

Argentina imposes a 21% VAT (IVA) on most goods and services. Tourists can sometimes claim VAT refunds on purchases over a certain amount, but the process is complex and not widely used.

Foreign credit card purchases may include an additional 30% tax, so always check your receipts.

Cryptocurrency and Digital Payments

Cryptocurrency is gaining popularity as a hedge against inflation and currency controls. Some businesses accept Bitcoin or other cryptocurrencies.

Digital payment apps like Mercado Pago are widely used for transfers and online purchases.

Practical Tips

• Carry USD: USD is widely accepted and can be exchanged for pesos at favorable rates.
• Monitor Exchange Rates: Use apps or websites like dolarhoy.com or Blue Rate to stay updated on the blue dollar rate.
• Avoid Counterfeit Bills: Check pesos for authenticity, especially larger denominations.
• Safety: Spread your cash stash across different hiding spots. Think of it as your own personal treasure hunt.
• Plan Ahead: Withdraw or exchange money in advance, as ATMs and exchange offices may run out of cash.