How to Make Your Money Go Further While in Argentina

As Argentina reopens to international travellers, those who visit will find their dollars or euros go a long way. When the government shut borders in March 2020, one US dollar was worth around 60 pesos – now it’s more than 100 pesos. 

cost of living Argentina

According to money.co.uk, Argentina is currently among the five countries in the world with the lowest cost of living. And Buenos Aires is the second most affordable city in the world to relocate to. Just recently, an English teacher in Buenos Aires went viral after making a TikTok video showing the things you can buy with US$5 in Argentina.

But there’s even more to it than this. Argentina’s unofficial exchange rate – known locally as the ‘dólar blue’ – currently stands at around 210 pesos to the dollar. That means each US dollar you hold can be worth twice as much in peso terms if you understand the dos and don’ts of changing money while in Argentina. We’ll get to that, but first some background on how this came to be.

Understand Argentina’s multiple exchange rates

Given Argentina’s history of banking crises, currency devaluations and persistently high inflation many locals prefer to convert their pesos into US dollars to protect their savings. But government restrictions in place since 2019 can make this difficult to do via official channels like banks. This has resulted in the widespread use of the unofficial currency market, where dollars or euros can be bought easily but at a premium. On the other side of the equation, anyone selling dollars in this black (or ‘blue’) market can dramatically reduce their cost of living in Argentina.

The (rough) cost of basic goods and services in Buenos Aires

Cost in pesos (AR$) Cost in US$ at official rate Cost in US$ at ‘blue’ rate
Coffee 150 1.50 0.75
Bottle of water 60 0.60 0.30
1 empanada 60 0.60 0.30
Lunch out 700 7 3.5
Dinner at a neighborhood restaurant 1,000 10 5
Dinner at high-end restaurant 3,000 30 15
Drink at a bar 500 5 2.50
Movie ticket 700 7 3.50
1 subway ride 40 0.40 0.20
1 bus ride 23 0.20 0.10
Monthly gym membership 3,000+ 30 15

 

Tips for making your money go further in Argentina

 

  1. Avoid using ATMs or paying with bank cards: In both of these cases you’ll be charged at the official exchange rate (or slightly worse) and likely face bank fees. In addition, daily cash withdrawal limits at ATMs are low, so you’d need to be using them a lot to cover your basic spending needs, paying fees each time.  

 

  1. Bring dollars/euros in cash and change at blue rate: This is a legal gray area and may sound risky to some. However, it’s the norm for many locals and foreigners in Argentina. You can see black market exchange operators in plain view on busy streets and the dólar blue rate is published in daily newspapers. The underground exchange houses are known as ‘cuevas’  and the dealers ‘arbolitos‘ – it’s best to ask people who already use the market to recommend a reputable place. If you don’t know anyone, hotels and tourism operators can usually offer advice. Note that foreign arrivals are legally allowed to bring up to US$10,000 in cash (or equivalent in other currencies) into the country without declaring it.

 

TIP: Most likely, you will only be able to exchange US dollars, euros or (sometimes) Brazilian reais on the unofficial currency market. It’s best to bring larger bills (US$100) – smaller bills (US$20 or below) will likely yield lower exchange rates. Always keep your cash in a safe place and if possible go with someone you trust when exchanging money.

 

  1. Use a money transfer service: A useful option if you are already in Argentina, would rather not carry large sums of cash or just feel uneasy about using the unofficial market. Some electronic money transfer services offer an exchange rate that’s more ‘blue’ than official – you pay online from your bank overseas and go pick up the cash in a local branch. Some options include Azimo, WorldRemit and Remitly.

 

  • Access the government’s new ‘tourist savings accounts’: This is a new measure that will provide tourists with a legal and official way to benefit from a more favorable exchange rate. In October, Argentina’s central bank announced that tourists visiting the country would be able to transfer up to US$5,000 into a temporary local account that can be set up online. Travelers can then use this account while in the country, with local media reporting that dollars will be converted to pesos at the so-called ‘dólar MEP’ rate typically used in capital market transactions. At the time of writing, this rate is slightly higher than the ‘dólar blue’ rate, more than double the official exchange rate. The measure is still in the process of being implemented, so the exact details may change and it is not currently available at all banks.

 

TIP: Whichever method you use to receive pesos, try to calculate how much you need to spend before converting your money. You don’t want to end up holding lots of extra pesos in cash at the end of your trip – they will be difficult to exchange in the US or Europe and may lose value over time. 

 

The low cost of living makes this a great time to visit Argentina. If you´re interested in learning Spanish in Buenos Aires, you can get in touch with us at Expanish for more information.

 

DISCLAIMER: This is an informative guide, based on available information from official government and other sources. It does not offer any rights or guarantees. Rules can change over time, and vary in different countries or regions, so always check information and requirements with official sources.

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