In Argentina it's a no brainier to take your travel cash in USD. The unofficial exchange rate is some 40% better.

What about Bolivia, Chile and Peru? Is there as much demand and so favourable exchange rates for dollars, or is it no different to just withdrawing cash from the ATM.

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I did not encounter a black or private market in Bolivia. Take care not to leave Bolivian paper currency in your clothes when washing...the paper falls apart. Folded bills separated at the crease when wet.

I didn't spend enough time in Chile to notice.

In Peru, at least in Lima, you can get a good exchange rate on the street. Keep your eyes open when in the city center. I approached a bank guard to ask if I could exchange USD for Peruvian pesos and he directed out of the bank to a guy standing on the street who was wearing a colorful yellow or lime green vests. I got a good rate and wished I had changed more when I had the chance, because in small towns outside of Lima it was sometimes hard find a cambio. Inspect your bills closely in Peru as there is a thriving counterfeit market. There are potions of the bills that are raised. I think it is the large number of the bill, ex. "100". If the area is completely flat, then its a fake. I met a tourist who got stuck with some phony bills. A shop clerk took a rubbing of a bill that I presented to test for the raised portion.

A friend took me to a financial trading office in Buenos Aires that had a foreign currency exchange, totally legal. I couldn't find the place if you held a flame to my feet, but a knowledgeable local could. I have read there are street kiosks in the city center that exchange currency on the side. I recall cambio guys too, but my memory is fuzzy.

The alternate to taking wads of cash to Argentina is transferring cash off shore. Here how it works, you have funds in bank ABC and the person you know in Argentina has an account in bank ABC, which is any bank not in Argentina. You transfer funds off shore from your account to their account, and they give you Argentinian pesos at an agreed rate. The benefit of using the same bank is avoiding transfer fees. I exchanged money privately in Argentina and Venezuela by transferring money off shore. Both of these countries have really screwed up economies and the locals buy USD for stability.

In Argentina avoid exchanging USD in banks or withdrawing money from ATMs. Budget your funds so you spend all of your AR pesos before you leave the country. The money changers will not be kind to you on the other side of the border. I think I lost about 15-20% getting rid of my AR pesos in Bolivia...

Always negotiate when changing money privately, particularly on the street. Speak softly as you don't want to embarrass a money changer in front of the completion. They take pride in getting the best deal, but will bargain.

If traveling to Cuba, take EUROS, not USD. You can exchange USD, but are charged a 10% fee to start. If you have a non-US bank card you can withdraw funds. All of the US based bank hassles should be changing soon...

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Peter B
2008/09 - NJ to Costa Rica and back to NJ
2012/13 - NJ to Northern Argentina, Jamaica, Cuba and back to NJ
2023 - Peru, Brazil, Paraguay, Argentina, Chile, Bolivia...back to Peru.

Blogs: Peter's Ride

I don't think it's much different to be honest. As for Argentina, it really is stupid not taking USD, as I found out. It's a lot easier to change them than one might imagine too. In tourist towns even normal shops, etc would have signs on the windows saying they'd exchange USD for peso. Crisp, clean 100 USD dollar bills tend to attract the best rates.

What have people done when travelling for an extended period of time?

I don't want to carry thousands of dollars in cash.

Save your dollars for Argentina. Use a debit card/cash card to withdraw local cash from ATMs just about anywhere. Variable daily limits of course but exchange rate is OK.

Take a credit card too as they are accepted all over in some countries but not all over in some countries - ie in Bolivia cash is king and there are ATMs everywhere.

Very poor exchange rate in Argentina and very low withdrawal limit AND high ATM charges. BRING DOLLARS. Ask in restaurants and touristy shops if they will change dollars.

Use http://www.ambito.com/economia/mercados/monedas/dolar/ to find theoretical dolar blue (note the single "l" in dolar) rate and expect to get within 10% of that if you are lucky

Few ATMs outside of Argentina will issue you US dollars if you need them for Argentina.

Watch out for fake notes everywhere. Most genuine notes have very good metal strips and watermarks technology (better than US notes) so it isn't hard to check them. Take your time - the locals do.

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Tony
Click here for Travel Photos & Travel Map

We do but we aren't quite as exposed to the elements as those riding bikes

In several countries we have had problems with credit cards and ATM withdrawals for several reasons - one town had all ATMs out because of a system failure. Some ATMs won't recognise certain cards (also happens in Europe and US) and sometimes credit cards won't work. But you can usually find a money changer somewhere so if you have Euro or Dollars you won't be stuck.

BTW - very important - you need cards with an embedded chip and which use a PIN. Without that feature, you may have a very hard time using them in some areas.

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Tony
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There's no other option.

Say you're spending a couple months in Argentina, it's either carry a few thousand dollars on you, or pay an extra 40% for everything.

Of course if you are mugged or lose the dollars you've lost out by more than 40%.

All in all it's a crap state of affairs

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Probably safer if you send it to me, for safe keeping

Sadly, the cash way is the best in certain countries.
I try to break it up into 4 stashes, then struggle to remember where those are when needed
I always carry a muggers wallet in a front pocket, with A$40 + expired credit card & licence too Thankfully, never used it

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Not the end of the world if you have to buy Pesos at the official rate. Afterall, the locals have to do that all the time and they don't have the option of earning good money outside of the country.
Fuel prices are another area where budgets get a hammering as you will have to forget the crazy low prices that Americans pay for their fuel.

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Tony
Click here for Travel Photos & Travel Map

Thanks for all the replies guys.

I'm an Aussie Tony so I'm used to being shafted on petrol prices.

It is not a good idea to carry more than a couple hundred dollars, or any amount you cannot afford to lose.... when on the streets of Buenos Aires, Argentina, or in just about any other large city.

There is a way to transfer USDs to Buenos Aires, Argentina and pick up the money in Argentine pesos receiving more Argentine pesos for each dollar than the you would receive from the Official Rate at an ATM or a bank.

Use www.xoom.com/ the exchange rate today - June 14, 2015 as
given by xoom.com is 11.45 pesos ar for each USD you send.

You will not receive the top Blue Rate, which according to the Buenos Aires Herald on the 6th of June 2015 was 12.68 pesos ar for each USD... but you will receive an amount about half way between the Official Rate and the Blue Rate.

"12/06/2015 | Argentina
'Blue' up one cent at 12.68 pesos amid controls
The US dollar closed half a cent higher today at 9.05 pesos in banks and foreign exchange agencies, while the "blue" parallel dollar ended one cent up in underground houses at 12.68 pesos."

As a permanent foreign resident of Argentina, I have been using xoom.com for many years.

The only problem I encountered is one of their pick up locations in Rosario was closed, when I was in Rosario and needed to pick up money...

There are several pick up locations in Buenos Aires, and I have never had a problem picking up my money in Buenos Aires.

If you are a tourist with a valid tourist stamp in your passport and:

1. If you have a checking or savings account in the USA
2. If you can produce proof of the origin of your USDs: social security, retirement pension etc, pay stubs, bank statements

Then you can use xoom.com to send USDs to Argentina and pick up Argentine pesos at any one of several pick up locations in Buenos Aires.

Hint: send small amounts $500.00 USD or less for less hassle
as the fees xoom.com are very little......

Eat, Drink and Be Careful with your cash

xfiltrate

That only helps people from USA.

Europeans or Australians won't have USD accounts.

There is a blue Euro rate, but I'm not sure how common or in demand Euros are. That would make it much easier for europeans and probably even better value for brits given the Euro-Sterling rate.

EDIT: azimo seems like a good alternative to xoom if you aren't American.

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Me too, but a few months in Turkey, or UK, or Iceland - or for that matter filling up at well 33 on the Canning Stock Route - soon gets you thinking normal Oz prices aren't so bad after all

I had no problem getting rid of Euro, but that was in Buenos Aries. Elsewhere dollars are a lot more in demand.

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Tony
Click here for Travel Photos & Travel Map

Open a "Schwab Bank High Yield Investor Checking Account" and pay no ATM fees, anywhere. In fact Schwab refunds the fees. This would be useful loading up with cash before entering Argentina from a bordering country... I plan to open an account before my next trip to SA.

Buck it up and load up on cash before you cross the border. Its a great time to travel through Argentina because their peso is weak, really weak. It ain't the end of the world to withdraw cash from an ATM in Argentina. I did it when I ran out of USD and the funds from an offshore swap with a local ran out. Its a truly lovely country with screwed up central economical planning that always manages to fail.

...and one more time

Don't cry for me Argentina...

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Peter B
2008/09 - NJ to Costa Rica and back to NJ
2012/13 - NJ to Northern Argentina, Jamaica, Cuba and back to NJ
2023 - Peru, Brazil, Paraguay, Argentina, Chile, Bolivia...back to Peru.

Blogs: Peter's Ride

We exchanged $20 US bills in Tarija Bolivia and got a rate of 13.6, better than what we were told on the streets in ARG. The exchange was done at an official "casa de cambio" near one of the main squares. It worked out to be 49% better than the official exchange rate.

-Terry

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