Money in Argentina
The money situation in Argentina is a confusing one, and I will do my best to keep this page updated as things change (which they often do!).
As of mid-2024, Argentina is experiencing significant economic challenges. They have had a volatile economy for decades, and this heightened again at the end of 2023 with inflation reaching 211%. Currently, according to official figures, over 40% of the population live below the poverty line.
There are many reasons for the issues with the economy:
1. Excessive Money Printing
I have to say, even I have thought in the past, “Why don’t governments just print more money if they don’t have enough?” Well, Argentina’s economy can be the answer why!
To be fair to the new president (whom, just to be clear, I am not educated enough about Argentinian politics to have a stance on!), it was the past government who thought printing money was a good idea. Printing money leads to some huge issues for the nation:
Increased money supply doesn’t correspond with an increase in goods and services, driving higher prices and causing a loss in purchasing power.
This decreases the value of the currency in relation to other currencies, making imported goods more expensive.
Workers demand higher wages to keep up with inflation, leading to higher labour costs.
These issues certainly aren’t isolated to Argentina – most countries are currently suffering from cost-of-living issues and inflation, however, Argentina has seen an extreme that (hopefully) most other countries won’t experience first hand.
2. High Debt Levels
Argentina has significant foreign debt exceeding USD 400 billion, much of which is denominated in USD, and has defaulted on its repayments multiple times.
3. Change in Government
In November 2023, Argentina elected a new president who promised to implement controversial and radical policy measures to fix the economy, that many experts say are likely to fail. He has even gone as far as to say he plans to change the currency over from the Argentinian Peso to the US Dollar, despite the two economies being very different
How do Argentinians deal with the economic turmoil? Let me introduce, “The Blue Dollar”.
If you have read other travel blogs on Argentina, you would have heard of the term “blue dollar”. It can be confusing to understand what that is and what it means for you as a traveller, so hopefully, this will help break it down for you.
The "blue dollar" in Argentina refers to the unofficial or black-market exchange rate for US dollars, which is significantly higher than the official government rate, including rates that the banks offer.
The black market isn’t as dodgy as it sounds! A lot of shops and restaurants will happily exchange Argentinian Pesos for US Dollars at the blue dollar rates, as this has higher purchasing power for them. After speaking with a few Argentinians, a lot of them are afraid of banks and don’t trust the government to protect them, so they prefer to keep USD cash as a safety net for their survival. In the past, the government has put restrictions on how you can access your money – at one point even restricting the amount of money you could withdraw per month from your bank account. So it’s easy to understand the distrust!
What does this mean for you as a traveller?
Payment Methods
Bring US Dollars: This is the easiest way to go. If you aren’t from the US, exchange money from your home country and bring this with you.
Western Union: Using Western Union was daunting for me until I actually used it and realised how simple it was! It takes 10 minutes to set up your account, then only a few minutes to transfer money.
You put an order in for how much local currency you want, then transfer the amount in your home currency to a BPAY code they give you. Once that has cleared (normally a matter of 2 minutes), they will give you a code you take to any Western Union office along with your passport, and they will give you the money. Super straightforward!
The only downside is that some Western Unions, especially in Mendoza and El Chaltén, run out of cash. So you might need to try a few Western Union branches or arrive at their opening time to find one with cash on hand. You can always cancel the transaction if you can’t find one that has cash in stock.
Visa and Mastercard: These companies recently started offering exchange rates pretty close to the blue dollar. If you pay by card, you will only pay slightly higher than the blue dollar, and significantly less than the official rate. However, your bank may charge foreign transaction fees – personally, I use my UP Bank card and my WISE card issued in Australia which don’t charge fees.
Important note: Some places, especially in Patagonia, don’t accept cards or offer cheaper rates for cash, so don’t rely on a card as your only access to money.
Dining Out
Top tip – do NOT rely on menus older than a few weeks to find restaurant/café prices!
When I was in Patagonia in April/May 2024, I found that any menu older than a month could have doubled in price – or if a menu was from 2023, the prices generally were a minimum of 8x more expensive! It makes it really hard to plan eating out, so if you can’t find a menu less than a few weeks old online, just be prepared to pay more than expected.
This doesn’t mean that you will pay 8x as much as you would have a year prior, as the currency exchange also fluctuates, but as a whole, like anywhere in the world these days, prices will keep rising.
Groceries
Some types of food in Argentina, including anything imported, can be hugely expensive. Try and stick to local brands as much as you can to keep prices down, and in some instances, you might not be able to find some everyday food items you are used to, especially in Patagonia. For example, I searched Bariloche high and low for coconut cream to make a curry – and I could not find it anywhere!
Just Remember…
You are in a very privileged position to be travelling to Argentina, and although you may be stretching your budget further than you anticipated in some areas, just remember that a lot of locals are really struggling to keep up with inflation here.
Some ways you can help:
Stay in local hotels/hostels etc. opposed to global chains.
Book directly with hotels and activity providers where possible, so they don’t have to pay commissions to third parties.
Most restaurants/cafes will have the option of paying a 10% tip on the bill – whilst it isn’t mandatory, it’s not much and I would always factor that in when ordering my meal.
Leave good reviews on Google – I would never really think to do this back home in Australia, but here it can make the world of difference to them to help boost their business.
Tell all your friends to visit Argentina! Despite the money situation, it is still possible to do Argentina on a budget – it can just be harder to plan! It shouldn’t deter people from visiting, as it is one of the most beautiful countries in the world and has a lot to offer as a destination!
