CURRENCY EXCHANGE IN ARGENTINA : UNDERSTANDING THE DIFFERENT RATES

When you travel to Argentina, one of the hot topics among foreign tourists is the exchange rate of the US dollar and the Euro.

What is the “Dollar blue” and “Euro blue”?

In Argentina, there are several exchange rates that do not follow the official rate found at the National Bank of Argentina. One of these rates is the “blue dollar.” If you exchange your dollars or euros at exchange houses that currently apply the blue rate, you will benefit from a much more favorable exchange rate compared to the official rate. This means that an exchange at the official rate of 10 USD is equivalent to less than 5 USD, for example, at the blue rate.

As of today, October 26, 2023, the official rate is approximately 1 USD = 350 ARS, while the blue dollar rate is approximately 1 USD = 960 ARS. For the same dollar, you will get more Argentine pesos to spend.

What about card payments?

Tourists’ credit card payments are generally processed at a rate close to the blue dollar rate. In reality, it’s the “dollar MEP” rate that is similar to the blue dollar rate.

It is primarily the responsibility of your credit card issuer to process the payment at the foreign tourist dollar rate. In most cases, this would be Mastercard or Visa. Currently, VISA and Mastercard provide refunds after a defined period. However, you may initially be charged at the official rate. Therefore, make a small test payment and wait for a few days. You might not receive a refund and end up paying double. My advice is to never make a significant payment directly without first conducting a test.

If you use Neobank cards like N26 or Wise, you will see the blue rate directly on your account statement from your mobile app.

Conclusion?

The best approach is to carry dollars or euros in cash with you during your trip and exchange them at the blue rate on-site (don’t exchange everything at once, as the Argentine peso is very unstable, and the rate can vary significantly from day to day). Additionally, make small payments with your credit cards upon departure to see what rate is applied by your bank.