About money and how to get cash

Cash in Argentina 🏦

When traveling over a longer period of time, getting cash is always an issue, since most of us wants to avoid paying too much in fees to the bank. I have never met anyone who appreciates these expenses, neither me, but in Argentina, it took me to a different level than just being annoyed and then forget about it. Here I really began to think of ways to avoid the many fees, as i unfortunately did not have a card free of charge. On a 5 month journey, it will always add up to a lot of money but in the South American countries and not least Argentina even more.

I always use the recommended advise. 

• • Change money at the destination upon arrival, 
  • Use credit card as much as possible 
  • Always pay with the card in the local currency. 

I do not like to bring too much money in cash when I travel, but depending on where I go, I always have some Euro’s, US Dollars or a bit of both. On this trip I did bring USD but far from enough to cover my need for cash.

Getting money in Argentina is not quite as in other countries, although it has improved. Before I left, I had read many recommendations to bring a lot of USD and exchange them on the black market, even though that is not really legal. Fortunately, Argentina changed their currency system by the end of 2014. Before the change, you got a much better rate and hence a lot more pesos, if you switched from dollars with their blue dollar system, as it is called, and it was also better than paying by credit card. Although not legal, the daily rate for blue dollars is announced in the newspapers.

Most famous place in Buenos Aires for money exchange is Calle Florida, but the locals have many other addresses.

Although Argentina has now “normalized” the currency situation, the blue dollar system still exists, the difference in exchange rates is just much less today. I assume all the people who had their earnings as currency traders would be unemployed so they continue business as usual and indeed for good reasons. In Argentina at the end of 2016, the exchange rate was not the biggest problem but compared to using an ATM  to get cash, it can be both an easier and cheaper solution to exchange cash via the blue dollar system.

ATMs:  

• Maximum amounts that could be withdrawn were 2,000 Argentinian pesos.  With the exchange rate at that time, it was just under USD 130 or DKK 1,000 or 50% less than the usually DKK 2.000 I usually experience as the lowest maximum amount.
• The cost of raising cash was very expensive.  I paid 97 pesos (6.3 USD / 47 DKK) in fee to the Argentine bank and then a similar fee to my own bank and the charge was the same regardless of whether I used a debit or credit card, so it added up to a lot of money.
• The ATM’s were very often out of order (read – empty of money). It was especially  a problem from Sunday afternoon to Monday afternoon.

Money Exchange 💵

If you have read some of my other blog posts, you will know that I arrived by bus to Buenos Aires without pesos and I arrived on a Sunday afternoon. Not a great situation, I realized. Being without money is never very pleasant, but it also cost me an expensive taxiride, as the driver who finally agreed to be paid in USD, demanded far more than if I had paid him in pesos. There were no ATM’s at the Retiro bus terminal and the once I tried later, did not take Mastercard or if they did, there were no money.                               Welcome to Argentina as the owner of my lovely AirB & B apartment replied, when I told him about my experiences.

I survived the rest of the Sunday without money, thanks to food and drinks left for me in my apartment, but Monday morning I started my hunt for cash.

At first I went to a bank, but they would not exchange to cash and in fact they recommended me to go to Calle Florida. The bank had ATMs, but they did not take Mastercard so I went to Calle Florida, and as soon as I got into the street, I could hear and see people calling Cambio, Cambio. Every 20 meters there was a man who yelled or asked people to exchange money. I chose one and negotiated a little with him. I did not know the current blue dollar course, but I knew the official rate was 15.20. My host had recommended me to change as little as possible, so he would give me an address later (not on phone), where I might be able to get a better rate. I exchanged 100 USD and for that small amount, it would not make the big difference if the price was 15.15 or 15.25, so I agreed to 15.20. The actual money swap can not happen on the street, so I had to go to his office in the building just behind him, and then suddenly I found myself alone in an elevator with a stranger, without knowing where he would take me 😨! 

Sorry for the drama, it’s just for fun and because I subsequently read about how careful one should be. However, at the time I did not have any issues being in the lift. Calle Florida is a busy shopping street, and there were also many people in the building. In the lift I was asked, if I was from the United States, but when I told I was from Denmark, he gave me a big smile and said football. Thought to myself, I was lucky I had chosen a guy at almost my own age, otherwise I don’t think he would have known much about Danish football, so thanks to the teams from the eighties and nineties to put us on the world map.

I had read in the news in the morning that Argentina had just lost to Brazil, I mentioned that to him and it was clearly not a result, he was happy about.

From the lift we walked through a couple of doors – security – I was told. Inside, we met his boss. A pretty young guy who exchanged my money as agreed and now finally holding Argentinian pesos, I was followed down to the street again. We parted – him with a wish that I would come back later – and I, to explore Buenos Aires, but at first I had to have some breakfast.

I later got an address from my host, where I could exchange more money. This time in a wine store. When I got close to the store, the owner was standing outside and immediately asked me, if I wanted to change money. Good at spotting tourists or maybe it is a better business than selling wine. However, the rate was only a little better than in Calle Florida.

I did manage to get money from an ATM before leaving Buenos Aires and many other places afterwards. I had to. In Argentina, Hostels and B & B asked to be paid in cash, which meant that I had to increase their prices each time with my bank charges.

• An example of a payment of 4,000 ARS for a stay at a Hostel, where they required payment in cash. The amounts are based on the rate of other payments at the same time and the conversion to USD based on the exchange rate I had paid by exchange from DKK to USD. Cash payments with money exchanged with blue dollars or withdrawn from ATMs are almost identical, so it depends a lot on today’s rate, which would be the best. Payments with credit cards are definitely the cheapest solution and it did not change during my trip. All my cash withdrawals are converted with an approx. rate  between 46.15 – 46.60, while all other payments are exchanged at a rates between 45.10 – 46.00. So not only did I have to pay a lot of money in fees but the cash amount is each time exchanged to a less favorable rate.

Cash in Chile  💸

In Chile, it is much easier to exchange money, and in most places you can exchange an amount of 200,000 Chilean pesos, which corresponds to DKK 2000 USD 130. Here a fee of 6,000 pesos was charged at each withdrawal – about DKK 65 / 9 USD. It is also a lot of money, not least those – fortunately few places – where foreigners could only get a maximum of 150.0000 (e.g. in Puerto Natales).                                       Fortunately, I needed a lot less cash, as I could pay a lot more with my credit card.

It’s easy to find ATM’s that takes Master Card and other foreign cards and with the exception of San Pedro de Atacama, I never heard about empty ATMs. Personaly I had no trouble getting cash in San Pedro, but it is recommended to avoid the exchange because the ATMs can run out of money.

Payment by credit card in Chile and Argentina 💳

it was possible to pay in all supermarkets by credit card. In Argentina, I had to show my passport or a copy of it, in Chile they did not ask for that.

Using a credit card in restaurants in Chile is easy. Payments can be made at the table as they bring the small machine to read the card and once the code was entered, the payment was finished. In Argentina, payments can only be made to a cashier, as this is where they have the only card reader. The code must be entered but before the payment has been completed, the receipt must be signed too. I asked why they needed both, but never got an answer. They looked at me with an expression like saying: what are you talking about.

I could pay for almost all my excursions with my credit card in both Argentina and Chile. In Argentina, the driver either at the beginning or end of the trip drove past their office, where I could make the payment. In Chile, it was also possible to pay for all my accommodations with my credit card.

Bolivia and Brazil 💸 💰

With my much shorter stays in these countries, I did not get much experience, but it was no problem getting money from the ATMs or making a payment with a credit card. It was accepted everywhere. Both countries add a bank fee of almost the same amount as in Chile and Argentina.

Summary

Everything is possible, also to get cash in Argentina, but it’s far from as easy as in most other countries. It is necessary to think about it and be a bit more prepared to avoid running out of money. As I crossed the border several times between Chile and Argentina, I learned to keep some cash when I left the country – both in Chile and Argentina. With no ATMs or banks at the bus terminals, it was necessary to have enough cash to pay for a taxi on arrival. Having said that, the last time you leave a country, it’s a good idea not to have too much cash left. Exchange rates between the countries are very very low.

I also learned that it’s a good idea to spend some time preparing for a new currency every time you arrive in a new country. One of the times I arrived in Chile, I gave the taxi driver too much money, which I discovered too late. It was actually the taxi driver’s attitude that made me think about it. She was suddenly very busy getting me out of the car. I guess she wanted to leave before I realized it. Never expect Chilean taxi drivers to tell you, if you have paid them too much.

If I had known what I know today, I would have brought far more USD, even though I also have to pay to get them exchanged from DKK. In the cities outside Buenos Aires I visited, I only heard a few dealers in the streets, but it was always possible to get an address where money could be exchanged. I would definitely also try to avoid paying for accommodations with cash. It is too expensive.