Exchanging Currency

[Member #4112]

The difference is the official rate you see on the currency exchanges of 5.2 and the "blue dollar" rate of 8+ you get from the local "black market" exchanges in the country.

[Sorcerer]

I'm coming to Buenos Aires next week and I'm confused. I see exchange rates in this thread in the 8+ range. When I look at online currency converters I see.

1,000.00 USD = 5,299.00 ARS.

US Dollar ↔ Argentine Peso.

1 USD = 5.29900 ARS 1 ARS = 0.188715 USD.

[Poker]

It is a common knowledge that most countries that experience black market foreign exchange system, do so with the government knowledge and the government manipulates it as an integral part of foriegn exchange policy.

In the first place there is a policeman in front of the exchange house. Second, if you and me know the address of the exchange house, so is the government.

Third I talked to one of the guys at the store after the recent slide from 10+ to 8.5 and asked him what happened. His answer; "its all the government".

Fourth; the presidenta issued an official statement on Thursday that everyone who changes pesos for Dollars will lose. Then on Friday she closed the exchange houses.

And the Peso was reaching 14 or 15 in Colonia, Uruguay. So when they opened the blue markets again on Tuesday and Wed the government just sold millions of Dollars and started the process of bringing it back to what is acceptable to them.

In Argentina they have a big tax on Credit Cards purchases abroad and almost all non essential imports are either very expensive, or not allowed.

Being semi Communist, the president tries all the methods that failed so many times before. As a result while almost all of the better economies in South America experienced gains against the Dollar, Argentina is on a never ending path of devaluations and inflation.

[Sleeper]

The government of Argentina plays a major role in this blue market and for example; two, or three weeks ago shut it down for several days. Once it reached 10 pesos per Dollar, they sold millions of Government Dollars to bring it back down to the 8.5 area.

You mean they sold the dollars to the cueva execs? Not that I am doubting you, but do you have a source for this? To me it seems that the mechanisms behind the drop in price have generally been regarded as a mystery, and I'd like more information on it.

[DavieW]

A brief history of the USD exchange rate since May 2007 (when I came to live here), based mainly on postings in this thread.

May 2007 - 3.10.

May 2008 - 3.24.

May 2009 - 3.75.

May 2010 - 3.90.

May 2011 - 4.15.

Oct 2011 - 4.37 - Government imposes restrictions on buying dollars, the cuevas are shut down and we start talking more and more about the 'blue' dollar. (At this point the difference between the official and 'blue' rate is about 20 centavos).

May 2012 - 4.92 - After a brief, holiday induced blip up to 5.05 in mid-Jan.

Jun 2012 - 5.50 - The cuevas are shut down again.

Sep 2012 - 6.15 - Jul / Aug / Sep was crazy time. Blips at 6.50 in Jul, before dropping back down to 6.15.

Oct 2012 - 6.20.

Nov 2012 - 6.30.

Dec 2012 - 6.40.

Jan 2013 - 7.50.

Feb 2013 - 7.60.

Mar 2013 - 8.20 - Government demands a drop in the blue dollar rate. Drops very briefly to 8.10 and then starts to rocket!

Apr 2013 - 8.97.

02 May 2013 - 9.30.

03 May 2013 - 9.40.

08 May 2013 - 9.80 - There are reports of 10+, but nobody reliable appears to have been lucky enough to actually exchange at those dizzy heights.

13 May 2013 - 9.00 - 'blanqueo' becomes a dirty word and a government amnesty is introduced to allow 'dirty' USD to be repatriated.

17 May 2013 - 8.70.

20 May 2013 - 8.60.

21 May 2013 - 8.40.

30 May 2013 - 8.70.

04 Jun 2013 - 8.50.

05 Jun 2013 - 8.35.

[Poker]

For the past 9 months the blue houses paid about 20-25 peso-cents less than the published rates, sometimes if you change over US $3,000 you can get 5 or 10 cents better.

The blue rate is subject to abrupt movements and if someone changes Dollars over the weekend, he might see 15 or even 30 cents difference by the time the store opens on Monday.

The government of Argentina plays a major role in this blue market and for example; two, or three weeks ago shut it down for several days. Once it reached 10 pesos per Dollar, they sold millions of Government Dollars to bring it back down to the 8.5 area.

[Tres3]

Hey Poker,
I'm not complaining about the difference between the published rates and the actual rates. Of course the exchange houses need to make a profit.
I am exchanging cash as a favor for friends who sometimes they think that I should be giving them the published rate because that's what they saw on the websites.

My take is that Jackson, or anyone else that is exchanging money, is not only doing a "friend" a favor, but in so doing is breaking the law twice. The first time was when he changed the money with the cueva, and the second time was when he did the "friend" a favor. If the "friend" does not like the exchange rate received, the "friend" is free to find an open cueva and make the exchange himself. If he does not like that alternative, the "friend" can pound sand, and take the "official rate".

Tres3.

[Jackson]

Jackson,

Everyone has to make a living, even a black marketeer! It has been my experience that the established houses pay 20-25 peso-cents less than the published rate.

So if you exchanged $1000 they made on you 20 pesos, for which they had to pay rent and for the cop that is in front of the store all day long.

Only in Argentina you can find a cop securing a so called "illegal joint" for the safety of the costumers that are actually breaking the law.

Hey Poker,

I'm not complaining about the difference between the published rates and the actual rates. Of course the exchange houses need to make a profit.

I'm only interested in establishing the average difference between the published rates and the actual "over-the-counter" rates because I find myself constantly a position wherein I am exchanging cash as a favor for friends who sometimes they think that I should be giving them the published rate because that's what they saw on the websites.

In other words, I get tired of having to explain to them that if I do them a favor and agree to sell them some of my pesos (for example, to get them through the weekend until the exchanges are open) that I can't give them the published rate because the next day when I go to the exchange house to replace the pesos I sold to them, that I'm not going to get the published rate either.

Now, back to the research.

Thanks,

Jackson.

P.S.: I would appreciate anyone else who is willing to assist in this endeavor.

[Poker]

Jackson,

Everyone has to make a living, even a black marketeer! It has been my experience that the established houses pay 20-25 peso-cents less than the published rate.

So if you exchanged $1000 they made on you 200 pesos, for which they had to pay rent and for the cop that is in front of the store all day long.

Only in Argentina you can find a cop securing a so called "illegal joint" for the safety of the costumers that are actually breaking the law.

By the way, to demonstrate how fair the charge is in comparing it to the legal fees elsewhere. I just went by an exchange booth in Europe.

The rate on the newspaper was 1.29 for the Dollar against the Euro. The asking price at the booth 1.45Dollar per Euro, that would have been a cost of US$160 to exchange a $1000 that you exchanged today. Or like 1300 pesos in the exchange rate you got today. That is 650% more than you paid. by the way before I left to Europe I changed my Dollars at a store in NYC the exchange rate was 1.31 Dollar for Euro.

Today at approximately 4 pm I exchanged $1,000 USD for pesos at $8.35.

Just before I left to exchange my cash, the popular local exchange rate websites were reporting the following Blue Dollar exchange rates:

La Nacion = $8.55 venta

Ambito.com = $8.55 venta

DolarPeso.com = $8.55 venta

DolarBlue.net = $8.52 venta

----------------------------------------------------------

Average Rate = $8.54

Rate Actually Received = $8.35

Discount from Average Rate = -2.20% (x .978)

You're welcome.

Jackson

[Jackson]

Greetings Everyone,

Today at approximately 4 pm I exchanged $1,000 USD for pesos at $8.35.

Just before I left to exchange my cash, the popular local exchange rate websites were reporting the following Blue Dollar exchange rates:

La Nacion = $8.55 venta

Ambito.com = $8.55 venta

DolarPeso.com = $8.55 venta

DolarBlue.net = $8.52 venta

----------------------------------------------------------

Average Rate = $8.54

Rate Actually Received = $8.35

Discount from Average Rate = -2.20% (x .978)

You're welcome.

Jackson

[TejanoLibre]

Does anyone know of a good exchange place (good rate, reliable), close (walking) to the Hilton Puerto Madero?

Thanks a bunch.

You really want to walk with a pocket full of cash?

I personally don't know of anything near The Hilton but there are about 25 of them on Lavalle and Florida or on Lavalle between Carlos Pellegrini and florida.

About 16 uphill blocks from you, give or take.

Corner of Carlos Pellegrini and Cordoba right next door to La Madelein. (Pellegrini 787).

Tourist Trap Shop and Long Distance Travel Bus Company called Turismo Dalman has been a good enough rate lately for a bunch of us.

Call them:

5. 031. 8008 and ask for "Cambio", tell them El Tejano Loco sent you and let's us know what the rate is .

Thanks,

TL.

Across the street from Excedra.

[Kurty]

Does anyone know of a good exchange place (good rate, reliable), close (walking) to the Hilton Puerto Madero?

Thanks a bunch.

[Sleeper]

Damnit!

Have to pay my rent today (6 months) so had no choice but to change yesterday. I'd called late on Friday and been quoted 8.7, but it had dropped again by midday yesterday and I got 8.56 (changing USD3000). I checked a couple of places on Florida on the way and was offered 8.3/8.4. The old Western Union place at Lavalle / Florida offered 8.5.

Really shouldn't complain, but it smarts a bit to be 4,500 pesos down from the peak of a couple of weeks ago!

I wouldn't be surprised if this continues for a while. My tinfoil hat guess is that the real value of the dollar is much higher, and Moreno and Co. are paying that rate for dollars, if not higher, with an accord with the cuevistas that they don't dish out too many pesos for the dollars coming in. It's would be a short-term win-win for the cuevas and the K regime, who have proven time and again not to think beyond a couple of months.

[DavieW]

Damnit!

Have to pay my rent today (6 months) so had no choice but to change yesterday. I'd called late on Friday and been quoted 8.7, but it had dropped again by midday yesterday and I got 8.56 (changing USD3000). I checked a couple of places on Florida on the way and was offered 8.3/8.4. The old Western Union place at Lavalle / Florida offered 8.5.

Really shouldn't complain, but it smarts a bit to be 4,500 pesos down from the peak of a couple of weeks ago!

[Jackson]

Greetings Everyone,

Today at approximately 1 pm I exchanged $1,000 USD for pesos at $8.70.

Just before I left to exchange my cash, the popular local exchange rate websites were reporting the following Blue Dollar exchange rates:

La Nacion = $8.78 venta

Ambito.com = $8.89 venta

DolarPeso.com = $8.87 venta

DolarBlue.net = $8.87 venta

----------------------------------------------------------

Average Rate = $8.85

Rate Actually Received = $8.70

Discount from Average Rate = -1.70% (x .983)

You're welcome.

Jackson