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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My blog about touring and adv riding

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
Click here for Travel Photos & Travel Map

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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My blog about touring and adv riding

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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My memory is becoming that good, I should be able to organise my own surprise party soon

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.