More purchasing power equals more opportunities to visit beautiful glaciers. SIgn me up! Photo by: Evan Berman

I recently visited Argentina and had a terrific time. You can too… as long as you don’t blow past your budget. Travelling is expensive and it’s always a good idea to plan out your expenses so that you know what you can afford. I’m all in favor of vacations– just not ones that put you in debt!

Argentina has a feature that most other countries do not: a way to nearly double the amount of money you have to spend. No, they do not have a cloning machine or access to Jerome Powell’s trademark money printer. (Sidebar: can we exchange the rate hikes for the money printer?) Rather, you should take advantage of the “Blue Dollar.”

The Argentinian Currency

As with many Spanish-speaking countries, the name of the currency used in Argentina is the Peso, in this case, the Argentinian Peso. Argentina has had numerous struggles with its economy and currency and the inflation that has occurred in the past few years is only the latest instance. In an attempt to limit the exodus of funds, the government has limited Argentine citizens to withdrawing no more than $200 in US Dollars (USD) per month.

Why does this matter? Well, when you’re a citizen of a country where your own currency is rapidly losing value and you have limited access to the most commonly used stable currency in the world, you have a very high demand for that currency. So, you should not be surprised that Argentinians are willing to pay top dollar (pun intended) for USD.

The Official Rate

As of December 20th, 2022, 1 USD: 173.93 ARS is the official conversion rate for dollars to pesos. Keep in mind that just 1 month ago, this was 1 USD: 163.17 ARS and 6 months ago it was 1 USD: 123.67 ARS. That’s what happens when you have super high inflation in a currency!

You’ll get this rate if you withdraw pesos at an ATM, exchange money at an official bank or ATM, or use a credit/debit card (though the Argentine government has claimed they will allow foreigners to access a rate similar to the Dollar Blue).

The problem with the above rate is that many times you’ll see $4,500- $5,000 ARS for an entrée. If using that official rate, the prices are the equivalent of $25.87-$28.75. That’s not terrible, but not much cheaper than in the US. Wouldn’t it be nice to halve these prices?

The Dollar Blue

Enter the Dollar Blue. Remember how the Argentine people have a strong demand for Dollars and are limited by how many they can withdraw per month? The Dollar Blue is an unofficial but widely accepted workaround. If you ask someone (a stranger, hotel attendant, or money exchanger) to get Argentine pesos in return for USD (particularly $100 bills), they will generally give you a better exchange rate. The “Informal Dollar” or Dollar Blue functions in the same manner as the official Argentine Peso– there is an exchange rate that is tracked.

Websites such as these reflect the conversion rate, which is at 1 USD: 322 ARD as of December 20th, 2022. Again, in order to access this higher conversion rate, you will need to have Dollars on hand to exchange. In general, it is a terrible idea to carry large amounts of cash with you in foreign countries, but in this case, I would recommend carrying a few $100 bills, depending on your budget and length of trip. That same 4,500 – 5,000 AR entrée that cost $25.87- $28.75 at the official rate would be $13.98- $15.53 at the Dollar Blue rate. Much better!

How to Access the Dollar Blue

When most people learn about the Dollar Blue, they are skeptical because the recommendation. isto exchange the USD at an underground exchange house in the touristy part of Buenos Aires. Sounds like a trap, right? Everyone we spoke with from waiters and hotel attendants to other tourists had no issues with this common practice. However, an alternative that we used is exchanging at a hotel. While I only got 1 USD: 285 ARS compared to the 1 USD: 300 ARS Dollar Blue Rate published at the time, that is still much better than the official 1 USD: 163 ARS rate.

Many times a hotel or restaurant will also accept Dollars as payment (at the Dollar Blue rate), so long as you pay with a $100 bill or similar. That being said, this will vary so try and exchange your money when you can.

Take Advantage of this and Enjoy Argentina!

Remember: Argentina is an incredible country and you are effectively doubling your purchasing power! From Patagonia to Buenos Aires and everywhere in between, there is much to see and enjoy in Argentina. Take a few $100 bills with you and enjoy yourself in Argentina! Stay tuned for highlights from my time there.

Evan