Argentine Currency Change

[caazcruzin]

The Argentine government is apparently bringing the official currency market in line with the "blue dollar" market as of yesterday. Generally I rely on ATM's to get cash or use credit card while travelling but was planning on bringing dollars to use the "blue dollar" market. Now, I'm not so sure. Any thoughts???

[dr__dawggy]

The Argentine government is apparently bringing the official currency market in line with the "blue dollar" market as of yesterday. Generally I rely on ATM's to get cash or use credit card while travelling but was planning on bringing dollars to use the "blue dollar" market. Now, I'm not so sure. Any thoughts???

 

The advantage of exchanging on the blue market evaporated overnight as the official rate skyrocketed 40% in one day.

 

the official rate of exchange today was 13.75. The blue market rate was only marginally better at 14.3.

 

You may still pay an international transaction and other bank related fees depending on your card, but the huge advantage of using cash on the blue exchange changed in twinkling.

[Merlinite]

From the BsAs Herald:

 

‘Blue’ falls 9 cents, gap with official rate moves from 48% to 3%

 

After the currency controls lifting announced yesterday by Macri’s economic team, the “blue” dollar is still trading although with low demand.

 

Through the so called “arbolitos” in the city, the parallel exchange rate was offered nine cents lower than Wednesday’s closing price at 14.48 pesos, virtually eliminating the gap with the official rate which narrowed from 48 percent yesterday to 3.4 percent today.

 

The difference between both exchange rates was attractive for savers who bought greenbacks at the official price and sold them at a higher price in the informal market.

[dr__dawggy]

Macri's actions may well be best for Argentina in the long term, but a lot of people are holding their breath in the short term...wondering about the implications of such a rapid move on prices.

 

Will it spur a similar spike in inflation, making it more difficult for residents on peso-denominated salaries to live? Will tourists pay 40% more for steak dinners and Tango shows?

 

No one seems to know at present but most expect economic convulsions ahead. It's an interesting time to visit Argentina as they transition from one status quo to another.

[NancyIL]

I will arrive in Buenos Aires in early February, and I will be very happy to not have to bring extra USD to exchange on the blue market!

 

I just charged 2 reciprocity fees to a credit card on the evening of Dec. 15th. The charge hasn't posted yet, so it will be interesting to see if I was charged 1569.60 ARS pp, as my confirmation says, or $160 US pp. If the charges are in pesos, I hope I saved ~$40 pp by the time the charges are processed by Amex!

[pmacher61]

it will be interesting to see if I was charged 1569.60 ARS pp, as my confirmation says, or $160 US pp. If the charges are in pesos,.... I hope I saved ~$40 pp by the time the charges are processed by Amex!

 

I believe that the reciprocity fee is always assessed in USD. Expect to see $160 per.

[pmacher61]

Any discussion of Argentine currency exchange rates has to consider an important corollary, i.e., what will happen to local prices of goods and services in Argentina.

 

When the euro was made mandatory, prices thoughout EU countries rose more than a simple mathematical calculation of existing exchange rates would have yielded. So, for example, suppose the German mark was initially trading at 2 to the euro when euros were an alternative currency. A beer selling for 4 marks should have cost 2 euros. However, before the conversion to euros became mandatory that beer cost 2.5 euros because the barkeeper wanted a margin of comfort that the exchange rate was not going to fluctuate to his prejudice. Many merchants simply took the opportunity to increase profits. This is likely to happen in Argentina.

 

In other words, the cost of living and/or visiting in Arg will rise for both locals and tourists. There will be even greater pressure to increase wages than the 30% annual inflation rate normally causes. Strikes are likely to occur with greater frequency. Macri has already said he wants to limit the rights of strikers to block streets.

 

How long it will take for matters to achieve some stability is yet to be determined. Hopefully, the transition away from a controlled currency will not be too painful or longlasting. Interesting times for Argentinians. My sense of things since my arrival here 2 days ago is that no one is overly agitated. Argentinians have become so accustomed to social and economic turmoil that the national character appreciates that this too will pass and life goes on. Pass the chimichurri.

p.s. Aside to Dr D - Are you in BA now?

[NancyIL]

I believe that the reciprocity fee is always assessed in USD. Expect to see $160 per.

 

I just checked my Amex account online. The charge for my husband's reciprocity fee has posted, and Amex was charged 1569.60 ARS. At the time I paid this the evening of Dec. 15th, http://www.xe.com said the conversion rate was a few cents over $160 US. However, what posted to our Amex account today was $113.33! I expect the charge for my reciprocity fee will be similar when it posts.

[NancyIL]

I just checked my Amex account online. The charge for my husband's reciprocity fee has posted, and Amex was charged 1569.60 ARS. At the time I paid this the evening of Dec. 15th, http://www.xe.com said the conversion rate was a few cents over $160 US. However, what posted to our Amex account today was $113.33! I expect the charge for my reciprocity fee will be similar when it posts.

 

Update, the charge for my reciprocity fee was also $113.33 US.

[tv77]

Good to know - thanks!!!

 

 

Sent from my iPad using Tapatalk

[4774Papa]

Any discussion of Argentine currency exchange rates has to consider an important corollary, i.e., what will happen to local prices of goods and services in Argentina.

 

When the euro was made mandatory, prices thoughout EU countries rose more than a simple mathematical calculation of existing exchange rates would have yielded. So, for example, suppose the German mark was initially trading at 2 to the euro when euros were an alternative currency. A beer selling for 4 marks should have cost 2 euros. However, before the conversion to euros became mandatory that beer cost 2.5 euros because the barkeeper wanted a margin of comfort that the exchange rate was not going to fluctuate to his prejudice. Many merchants simply took the opportunity to increase profits. This is likely to happen in Argentina.

 

In other words, the cost of living and/or visiting in Arg will rise for both locals and tourists. There will be even greater pressure to increase wages than the 30% annual inflation rate normally causes. Strikes are likely to occur with greater frequency. Macri has already said he wants to limit the rights of strikers to block streets.

 

How long it will take for matters to achieve some stability is yet to be determined. Hopefully, the transition away from a controlled currency will not be too painful or longlasting. Interesting times for Argentinians. My sense of things since my arrival here 2 days ago is that no one is overly agitated. Argentinians have become so accustomed to social and economic turmoil that the national character appreciates that this too will pass and life goes on. Pass the chimichurri.

p.s. Aside to Dr D - Are you in BA now?

Yes, I agree that Argentina has some rough times ahead, in my opinion, this currency move is a good one. The Peronists have run the country to the ground and turned it into a kleptocracy. There will be strikes, since the unions are tied to the Peronist party.

 

Inflation will likely continue for a while, but if the right changes are made, more foreign investment will follow and perhaps the crooks will be cut off at the feeding off the government and taxpayer.

 

I remember a couple of days that we were walking around the downtown area, there was a union organized demonstration with horns and drums, banners, etc. Our guide told us this was almost a daily occurrence and not a strike, but just the union flexing their muscles.

[LuvKruzn]

I just checked my Amex account online. The charge for my husband's reciprocity fee has posted, and Amex was charged 1569.60 ARS. At the time I paid this the evening of Dec. 15th, http://www.xe.com said the conversion rate was a few cents over $160 US. However, what posted to our Amex account today was $113.33! I expect the charge for my reciprocity fee will be similar when it posts.

I just paid little over $160 USD pp for our reciprocity fees. Looks like they have adjusted the ARS rate. You got a real deal. Good Timing.☺

 

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[NancyIL]

I just paid little over $160 USD pp for our reciprocity fees. Looks like they have adjusted the ARS rate. You got a real deal. Good Timing.☺

 

Sent from my YOGA Tablet 2-1050F using Tapatalk

 

It was pure luck, as I couldn't have timed that if I tried!

[paws10]

I, too, charged my reciprocity fee on AmEx on 12/15. Was pleasantly surprised to find the conversion rate was $226 for two people!

[cluso]

Update, the charge for my reciprocity fee was also $113.33 US.

 

Just checking to see what site you used to pay. Thank you.

[NancyIL]

Just checking to see what site you used to pay. Thank you.

 

https://reciprocidad.provincianet.com.ar/

[jig]

A better way is to not go there. Been there before any of that. No intention to again. Not the same as a visa. It's an entry tax.

[NancyIL]

A better way is to not go there. Been there before any of that. No intention to again. Not the same as a visa. It's an entry tax.

 

It's called a reciprocity fee because the US government (and apparently the Canadian and Australian governments) charges citizens of Argentina a fee to enter the US. It isn't inexpensive, but at least you don't have to jump through hoops to pay it - as you do to get a Brazilian visa. I wouldn't advise people to avoid Argentina merely due to the reciprocity fee.

[jig]

I'm not really saying don't go. It hurts their tourism business. I would rather pay for something like a visa. At least they have to do something for it. The USA charges for visas for everyone. Yet 170 countries the benefits out weigh the morals. Turkey tried it and lost so much American business now you get an Evisa for 10$.

You mentioned Brazil. The tourism industry and the parliament wanted to end the visa thing for Americans. The foreign ministry saw all the money they were going to loose and it died.

[pmacher61]

A better way is to not go there. Been there before any of that. No intention to again. Not the same as a visa. It's an entry tax.

 

Once paid, the reciprocity fee is good for 10 years of unlimited entry to Arg. You don't pay on each entry. Seems like a visa to me.

[davwen81]

Pmacher61, that's not true for all countries. For Aussies it only lasts one year! Same with the Brazilian visa!

[pmacher61]

Pmacher61, that's not true for all countries. For Aussies it only lasts one year! Same with the Brazilian visa!

As a yank (a septic tank) I was not aware the duration of the Argentine and Brasilian "visas" for Aussies was so limited. Of course, that may have something to do with the lingering perception of Australia as a British criminal colony. :)

[pochito]

As a native Argentine I totally agree with you. This entry tax is bad for tourism

which has decreased since it was introduced by the peronist administration.Hopefully the new government will do away with it

 

 

Regarding peso VS dollar exchange,the informal market is still is a quick and easy transaction and you get a good rate. Next to the Alvear palace Hotel on Posadas street they have place inside a strip mall where they will exchange American and you won't get scammed.

[NancyIL]

As a native Argentine I totally agree with you. This entry tax is bad for tourism

which has decreased since it was introduced by the peronist administration.Hopefully the new government will do away with it

 

 

Regarding peso VS dollar exchange,the informal market is still is a quick and easy transaction and you get a good rate. Next to the Alvear palace Hotel on Posadas street they have place inside a strip mall where they will exchange American and you won't get scammed.

 

An ATM machine will be quicker and easier, with probably not that much of a difference in value.

[Mgetta1]

An ATM machine will be quicker and easier, with probably not that much of a difference in value.

 

There is a very large difference between the "blue" informal exchanges and the ATM which will dispense at the "official" rate.