Argentina Blue Dollar 101

I haven’t found a recent, comprehensive, explanation of blue rate dollars for tourists so here’s my summary in early 2015 of my extensive reading. I’ve had it checked by a savvy Argentine acquaintance whose comment was for people to be careful as “there is a lot of information on this posted all over the internet, some is well intended, other is plain garbage, a lot is outdated. The Devil is in the detail and people need to do their due diligence and understand the risks they are running.”

The blue dollar exists because economic problems have led the Argentine government to introduce currency controls, e.g. restricting the amount of dollars that individuals can acquire legally, or foreign businesses can repatriate; a 35% tax on foreign currency credit card transactions. However, many people badly want dollars – to buy US assets safe from confiscation and inflation, to travel and to buy unavailable goods – so a black market in dollars has developed.

Buying and selling these ‘blue dollars’ is illegal so that larger businesses will only operate on official exchange rates, e.g. for ATM and other bank transactions. Trading is tolerated for individuals, and there seem to be no cases of tourists being arrested for participating (though there has recently been a crackdown on bigger players). However, my Argentine friend comments that “few like to point out the various things that could go wrong, and the fact that if something doesn’t go according to plan there is ZERO recourse with the authorities as these things are conducted in a ‘grey’ market.”

The daily blue rate – which fluctuates greatly - is widely published including at http://dolarblue.net/. Yesterday’s rate was 13.57 pesos compared to the official rate of 8.61, i.e. almost 60% better. However, this is an ‘ideal rate’. My Argentine friend comments that “the actual implementation of a trade (and the effective exchange rate that a visitor will obtain) is going to vary greatly depending on how you trade, where you trade, when you trade (weekday or not), what currency and bills you trade, and what amount you trade. There is a long list of details that are involved.” In general, rates are best in Buenos Aires and larger cities. Showing awareness of current market rates can be helpful in getting a better deal, as some people will assume that foreigners are naïve and offer a less good rate.

Unfortunately, this system involves having large amounts of cash, perhaps in foreign currency (to bring in for exchange) and certainly in pesos (post exchange and for much of a trip). It can be difficult to change pesos back at the end of a trip as well. A black market also has great scamming potential. Counterfeited notes are one risk – it’s important to check for any signs of dodgy pesos and don’t let dollars out of your sight, as genuine notes can quickly be swapped for copies. A search will come up with details of holograms, silver lines and embossing that should be present on genuine notes. One risk mitigation measure is to only exchange a relatively small amount each time (which might affect the exchange rate).

The main options for tourists to get pesos at blue(ish) dollar rates are a) bring clean and unmarked currency (US dollars are by far the best) into the country and exchange them, b) buy pesos outside Argentina, c) use special money transfer services, and d) pay for (in dollars) and bring in goods desired by Argentines and take payment in pesos at the blue rate.

A) Exchanging cash – This is done through underground exchanges known as ‘cuevas’. Some are sophisticated and used by business, but many are informal operations that pay touts to pull tourists and other individuals in from the streets – especially Florida and Lavalle in central BA - through the words ’cambio cambio’. The risks of counterfeiting and scams are highest with this route, and traders may also offer low rates. A more reliable route is get a recommendation about a trader from a hotel or other local source. Outside BA ‘Casa de Cambios’ are reported to sometimes give blueish rates informally. You can also check the various travel forums for people describing how they have done it, and send them a private message to more details if necessary.

B) Acquiring pesos outside Argentina – this is easiest at some exchange bureaux in Chile and Uruguay. Cash is easiest but some may accept payment through credit or debit cards. There are restrictions on bringing pesos into the country but I’ve seen no reports of problems.

C) Money transfer – Mainstream companies such as Western Union use official exchange rates but specialist blue rate providers are Xoom (the most widely used) and Ria, both of which only take dollars. Azimo, Exchange4Free, Sendvalu and Small World also work in other currencies. You pay them in your currency and they provide pesos at well above official rates (some offer better rates than others, and some also charge a fee) from your choice of designated pick up points. This route avoids the problem of bringing large quantities of cash into Argentina but can be inconvenient (e.g. limited pick up points, restricted opening hours) and requires extra caution in going to a location that criminals may be aware of.

D) Importing goods – Several sites have sprung up to facilitate foreigners paying for goods for Argentinians and bringing them into the country, e.g. Entrusters. People sometimes post either offers or wants on travel forums too.

Many smaller shops, hotels, restaurants etc. will also accept payment of peso bills with dollars at a better than official exchange rate.

Please don’t turn this into a general discussion thread – just post corrections or additional information so that it can be of maximum reference value to fellow cruisers.

The prices in the duty free shops (at EZE) are expressed in USD, however one can pay in pesos and the price in pesos for an item is calculated by converted the USD price at the lower official exchange rate. This makes for great bargains. In fact, travelers might want to load up on pesos for some serious duty free shopping when exiting ARG.

For example, a bottle of old, single malt scotch that may retail normally for 100 USD may be priced at 80 USD in duty free. The cost in pesos is 80 x 8.62 (today's official exchange rate) = 689.2 pesos. In order to acquire 689.2 pesos one needs to exchange approx. 51.08 USD (689.2 divided by the easily obtained blue rate of 13.5 = 51.08).

See http://www.ambito.com, a site which I think publishes a slightly more accurate blue rate quotation. The rate is published at 11 am when the market opens. It fluctuates throughout the day.

I've been reading a bit about this Blue Dollar, etc., and I must admit that I'm a bit confused. We are cruising out of BA next month and have about three days there before sailing. Most of our tours (private) are already paid for, but one wants payment at the end of the tour. The price was quoted in USD. I've read that most places/guides accept USD, so I guess there won't be an issue there. I'm also assuming that for the tours which have already been paid, we will be able to tip our guides in USD as well. What about restaurants, however? Do they prefer USD or should we exchange for pesos? We would typically pay by credit card, specifically ones that do not have any international transaction fees - any issue there?

I've been reading a bit about this Blue Dollar, etc., and I must admit that I'm a bit confused. We are cruising out of BA next month and have about three days there before sailing. Most of our tours (private) are already paid for, but one wants payment at the end of the tour. The price was quoted in USD. I've read that most places/guides accept USD, so I guess there won't be an issue there. I'm also assuming that for the tours which have already been paid, we will be able to tip our guides in USD as well. What about restaurants, however? Do they prefer USD or should we exchange for pesos? We would typically pay by credit card, specifically ones that do not have any international transaction fees - any issue there?

You don't seem to have comprehended the issue. Paying with a credit card will cost 60% more than if you exchanged USD when in BA. Of course, the choice is yours as long as you comprehend the issue.

p.s. It would be illegal for any merchant to insist upon payment in USD even if the contract specified such. You always have the legal right to pay in legal tender of the country, pesos, and converted from USD at the official rate. Of course, that might be a little unfair to the vendor, because chances are the price he would have quoted in pesos would be the USD price x the blue rate. Maybe, or maybe the vendor is just a greedy SOB who is willing to take advantage of the ignorance of tourists.

Hola softball 20. The black market for the USD aka "dollar blue" is quite simple.Most restaurants accept American.Always ask what the rate is in advance,if the restaurant gives you,say 12,00 for you Dollar that is OK

Customary tip is 10% if possible try not using your credit card because you end up paying more for each transaction.@ a stated rate of approx. 8.5

If you plan staying for a couple of days than you might want to change some American into Arg$ because cab drivers will accept pesos only.Ask at your hotel for some advice on this.Florida pedestrian is teeming with currency traders just make sure not to venture out on your own.

Last but not least prices are very inexpensive at most restaurants and a good bottle of mabec goes for just pesos 200 or less--about $17,00 and if you want to try our best beef go for Lomo or fillet Mignon.

Buena suerte--good luck--

enjoy your stay in Buenos Aires.

Hola softball 20. The black market for the USD aka "dollar blue" is quite simple.Most restaurants and shops will accept American.Make sure to ask what the rate is in advance,if the restaurant gives you,say 12,00 for your Dollar that is OK

Customary tip is 10% if possible try not using your credit card because you end up paying more for each transaction.@ a stated rate of approx. 8.5

If you plan staying for a couple of days than you might want to change some American into Arg$ because cab drivers will accept pesos only.Ask at your hotel for some advice on this.Florida pedestrian is teeming with currency traders just make sure not to venture out on your own.

Last but not least prices are very inexpensive at most restaurants and a good bottle of mabec goes for just pesos 200 or less--about $17,00 and if you want to try our best beef go for Lomo or fillet Mignon.

Buena suerte--good luck--

enjoy your stay in Buenos Aires.

Thanks for the info!

Hola softball 20. The black market for the USD aka "dollar blue" is quite simple.Most restaurants accept American.Always ask what the rate is in advance,if the restaurant gives you,say 12,00 for you Dollar that is OK

 

Customary tip is 10% if possible try not using your credit card because you end up paying more for each transaction.@ a stated rate of approx. 8.5

 

If you plan staying for a couple of days than you might want to change some American into Arg$ because cab drivers will accept pesos only.Ask at your hotel for some advice on this.Florida pedestrian is teeming with currency traders just make sure not to venture out on your own.

 

Last but not least prices are very inexpensive at most restaurants and a good bottle of mabec goes for just pesos 200 or less--about $17,00 and if you want to try our best beef go for Lomo or fillet Mignon.

 

Buena suerte--good luck--

enjoy your stay in Buenos Aires.

You have answered so many of the questions I had. Your information will be quite valuable upon our arrival in Buenos Aires next month. Thanks so much!:)

muchas gracias pochito... that is very helpful response

now i comprehend the whole issue...

You are very welcome.I am sure you will like my native city.

Regards

Pochito

We acquired our Blue dollars through our B&B.

We loved Argentina and Buenos Aires. It is sad to see a wonderful country so poorly run.

I've been reading a bit about this Blue Dollar, etc., and I must admit that I'm a bit confused. We are cruising out of BA next month and have about three days there before sailing. Most of our tours (private) are already paid for, but one wants payment at the end of the tour. The price was quoted in USD. I've read that most places/guides accept USD, so I guess there won't be an issue there. I'm also assuming that for the tours which have already been paid, we will be able to tip our guides in USD as well. What about restaurants, however? Do they prefer USD or should we exchange for pesos? We would typically pay by credit card, specifically ones that do not have any international transaction fees - any issue there?

How did it go? I'm going to be cruising out of BA next January and am confused about why people bother to exchange if the locals are so eager to have US dollars. Was it necessary to exchange dollars for pesos? How much did you exchange for 3 days worth of touring? Do smaller merchants not want to take small denomination US dollar bills for purchases?

How did it go? I'm going to be cruising out of BA next January and am confused about why people bother to exchange if the locals are so eager to have US dollars. Was it necessary to exchange dollars for pesos? How much did you exchange for 3 days worth of touring? Do smaller merchants not want to take small denomination US dollar bills for purchases?

1. Not all merchants and cabbies are eager to take dollars. Most will, some won't. The exchange rate will vary. Restaurants, particularly in the popular tourist areas, often post an exchange rate that is near the blue rate. Other restaurants exchange at the official rate or not at all. Same with cabs or other merchants.

2. Very few tour guides accept pesos. Dollars are usually required, so no Blue peso savings there.

3. The real savings is by paying for your hotel in Blue pesos. Many hotels post rates in dollars and pesos, with pesos converted at the official rate. A few travelers have reported their hotel offered a better exchange rate, but don't count on it. It's the exception rather than the rule.

Hypothetical example. The Alvear Art Hotel where we stayed last Feb. is currently showing a rate for an early January stay of 2752 pesos or 295 dollars per night. 2752 Blue pesos will cost you about 183 dollars at current rates. That's a savings of 112 bucks a night over the dollar amount posted by the hotel. Well worth exchanging money and paying in pesos.

We stayed 6 nights and prepaid our bill on the first day so we didn't have to worry about carrying around a large wad of money during our stay. Worked out perfectly.

The touts on Calle Florida can be a real nuisance and the street is full of them. AVOID! Our guide was an American living in BA and he took us to a news kiosk on Florida where we exchanged new $100 bills for pesos and got a great rate for us. We went back another day to get more and got almost the identical rate ourselves. The kiosk is by the Halsey (Menswear Store) on Calle Florida

The touts on Calle Florida can be a real nuisance and the street is full of them. AVOID! Our guide was an American living in BA and he took us to a news kiosk on Florida where we exchanged new $100 bills for pesos and got a great rate for us. We went back another day to get more and got almost the identical rate ourselves. The kiosk is by the Halsey (Menswear Store) on Calle Florida

Can you share his name and contact information? this would be very helpful

Thank you. It's all very confusing but this does help me to start sorting it out!

Hello to all. The blue Dollar--the black market-- stuff is very confusing because our economy is always quite bad . Just remember some basics

a-Ask at the front desk for info.

b-Use only pesos for cabs

c-You can easily use USD at restaurants

d-Pay your hotel in Arg money

e-try to change $50-$100 notes because you get a better rate. At restaurants

and cafes you can pay with smaller US bills.

f- Muy Importante! We use the $ sign but it is Arg.Pesos. not US$

Finally today the rate is about 15.5 to the Dollar so if a shop owner/restaurant gives you 14,00 it is still a good deal.

Enjoy my city!

I plan to cruise in Argentina a year from now. As I look at hotel prices on some of the Internet discount sites, I see prices quoted in U.S. dollars.

Let's assume that I book a room at Hotel X at $100 a day. Add to that a hefty VAT. So are you saying that if I pay this on my credit card in U.S., another 35 percent tax is added>

I plan to cruise in Argentina a year from now. As I look at hotel prices on some of the Internet discount sites, I see prices quoted in U.S. dollars.

 

Let's assume that I book a room at Hotel X at $100 a day. Add to that a hefty VAT. So are you saying that if I pay this on my credit card in U.S., another 35 percent tax is added>

It isn't that another 35% tax is added. It's that by using your credit card you aren't able to take advantage of the discount available by paying in Blue peso cash.

For example, the Plaza Hotel website shows a promotional rate of 93.80 dollars per night in mid January 2016. With the VAT of 21% 19.70 the total is 113.50 per night. If you use your credit card, you will pay 113.50 per night, plus whatever fee your credit card charges for foreign transactions (several percentage points, probably). Fees vary by card.

What if you decide to pay cash instead of using your credit card? The amount in pesos at the current official rate is 1068 pesos including VAT. At the Blue rate of 15 pesos per dollar, thats 71 dollars per night versus the 113 you pay using your credit card and paying in dollars.

So, by using your credit card you pay substantially more by not taking advantage of the built in discount between the official and blue rates of exchange rather than an additional 35% tacked on to your bill for using the card.

I hope that's not too confusing. The bottom line is paying 71 dollars per night vs 113 dollars a night. You can pay for meals or site seeing with the savings.

That explains it.

Last time we were in Buenos Aires (maybe five years ago or more), restrictions in force at the time made money changing kind of problematic. I patronized a "numismatic" shop that did the exchange.

Just got back from Buenos Aires last week and was originally very nervous about this whole "blue market" dollar exchange. It wound up being very simple. We walked down Calle Florida and asked a few people calling out "combo" what their rate was and eventually decided what the average rate was 14 pesos/dollar (while the official rate was about 10). I was surprised, though, to find out that you could get a bit higher rate for $100 bills as i had read somewhere to bring smaller bills. We ended the cruise in Argentina so were cautious to exchange only as many dollars as we would need because, not even Argentinians want to buy back their currency! Same with Chilean pesos. Most restaurants, taxis, stores were happy to take our dollars but the exchange rate varied greatly from 12 to 16.