Argentina is without a doubt one of the best countries in Latin America for foreign tourists to travel to; the people are friendly, the cities are incredible, the scenery is world-beating, and the food is amazing.
But if you’re not aware of this simple tip, it can be eye-wateringly expensive. Thanks largely to financial mismanagement by politicians and low public confidence in the peso, the Argentinian currency is in free-fall and inflation is rampant. So a black market has formed, known as the “blue dollar”, If you exchange using the blue dollar, you’ll get double the pesos as the official rate. But what is blue dollar in Argentina?
What is blue dollar in Argentina?
The Blue Dollar is the affectionately given name for all currency exchanges that happen outside of government control in Argentina. It’s a unique anomaly born out of the necessity of Argentinians wanting to hastily exit their failing currency and protect their savings.
Like most worldwide problems, it first came about because of a politician who was bad at their job, specifically the leftist administration of Cristina Fernandez de Kirchner, which imposed strict currency controls on how many pesos Argentinians could exchange per month.
This unsurprisingly caused Argentinians to fear for the value of the peso, and subsequently, they rushed to exchange their currency on the black market.
Things did look a bit better in 2015, though, when a more market-friendly president was elected and chose to abolish limits on currency exchanges. This, however, was short-lived, as their successors chose to re-impose draconian currency controls, causing inflation to skyrocket and the peso to crash to levels never seen before.
As seen in the below graph from XE.COM, the peso’s official rate has crashed by 62% in 2023 alone. With the unofficial rate being even more drastic, when I was in Argentina in April 2023, the blue dollar was at 500 pesos to the pound; in September 2023, it was sitting at nearly 1000.
How many different currency rates are there?
When you first arrive in Argentina, understanding the currency is sort of like trying to unravel the mystery of the universe using only an abacus. Understanding the different rates is the first step to getting on your feet. Technically speaking, there are four different rates available when spending or exchanging money.
The first is the official government rate, which at the time of writing sits at about 349 pesos to the dollar; you want to avoid paying this as much as possible.
Next, we have the government-set MEP rate, which basically means that when foreign cardholders spend in ARG, they get a better rate than if an Argentinian citizen does. This changes all the time, but I found it to be about 50% better than the official exchange rate.
After this, there is the Western Union rate; this varies wildly day by day, but it’s normally pretty close to or better than the Blue Dollar rate.
Finally, we have the Blue Dollar Rate, which is the name given to all currency exchanges settled outside of government regulation and normally with cash.
How can I take advantage of the blue dollar rate?
There are a few different ways to do this, with each of them having its pros and cons.
In-person exchanging or visiting a cambio
You’ll most likely get the best rates by visiting Calle Florida in Buenos Aires; as soon as you walk onto the shopping street, you’ll be approached by people shouting “cambio, cambio, dollar, euro”. This method of exchanging is easy, but you need to know what the blue dollar rate for the day is and show the trader the rate on your phone so you don’t get ripped off. Traders generally like larger notes, like $50, and are unlikely to accept any that have tears or creases.
Also, be aware of fake notes; counterfeiting is a big problem in Argentina, and tourists are the most likely to be targeted.
However, this requires carrying cash; no exchanger will take a card. I would never recommend that someone carry more cash than they need to in a city. So I believe that your best bet is through Western Union.
How to use Western Union
Western Union branches are dotted all around the country and are by far the easiest and safest way to get your hands on pesos at the correct rate. Their exchange rate largely mirrors the blue dollar rate that you’ll get from Cambio’s.
To take advantage, follow these simple steps:
- Download the Western Union app.
- Register an account and add your card.
- Start a transfer with yourself as the recipient; make sure you put the country you’re sending to as Argentina.
- Attend any Western Union shop in Argentina with your passport.
- Collect your money and enjoy
Just ask your Argentinian friends.
As I previously said, Argentinians can only exchange a small amount of pesos into USD per month—$200 to be exact—and people want to exchange a lot more.
Once you’ve made an Argentinian friend (it won’t take long), just ask them; chances are they’ll jump at the chance to help you out. After all, with the peso continuing to hemorrhage value, everyday people are going to want to keep their savings safe. If you can help them do that, you should.
Ask at your accommodation.
Every hostel I stayed in in Argentina offered a cambio service for guests, with rates mirroring those available at Western Union. As with exchanging in person, make sure you know what the going rate is and check it against what they’re offering. Largely, the hostels are very trustworthy, but it’s better to be safe.
Final thoughts
Every travel blogger will say every country is incredible, but Argentina is genuinely one of the best countries I’ve ever been to. I never thought I’d say this, but the people here are even more kind and welcoming than Chinese people, and there are some pretty incredible things to see and do here.
But thanks to mismanagement by successive dysfunctional governments, inflation is rampant, and hard-working, good people are seeing their savings disintegrate at a rapidly accelerating rate. It’s a sad state to see a wonderful place in, and I hope for nothing more than this problem to be resolved. But if you visit Argentina, make sure you take advantage of this loophole, exchange with friends if you can, and spend your money in local shops and restaurants rather than chains.
