Looking For An Affordable Family Vacation, Try Visiting Argentina

 

I just got back from two weeks travelling in Chile and Argentina and wow! So much history, culture, nature, it's overwhelming and wonderful at the same time. The highlight for our family was trekking on the Perito Moreno Glacier in Patagonia. A once in a lifetime experience like no other!

With so much to do, you might think this is an expensive vacation, but it's actually quite affordable right now for those with US dollars.  

This is a picture of the Argentine pesos I got when I exchanged $400 USD. Each of those 1,000 peso notes equals about $3 USD. 

Right now, Argentina is suffering through 96% inflation which is terrible for the residents of that country, but a huge plus for tourists if you handle your money correctly. 

Plus of course, if you follow my blog and get your flights and hotels with points and miles then wow, it's almost like a FREE vacation. 

Looking For An Affordable Family Vacation, Try Visiting Argentina

What does 96% inflation look like? It means that you can change your USD to pesos today for let's say 310 pesos per $1 and by tomorrow, the rate will be 340 pesos per $1. 

The inflation is so crazy that there are actually two exchange rates - the official rate and the blue rate. 

The official rate is about 175 pesos per $1 USD. 

The blue rate changes daily, but is running about 350 pesos per $1 USD. 

So you can see if you get the official rate, then you will probably think prices in Argentina are equal to any European country. BUT if you change money at the blue rate, you get a 50% discount. 

It's a bit hard to follow, but check this out. I visited a Starbucks in Buenos Aires. Each of my drinks were priced at about 800 pesos. The parfait was 950 pesos. 

For the three drinks and the parfait, the total was 3630 pesos. If you get the official rate 175 pesos per $1, this Starbucks run will cost you $20. Pretty typical for the US. BUT if you get the blue exchange rate 350 pesos per $1, this Starbucks run will cost you $10.50. Crazy, right?

Looking For An Affordable Family Vacation, Try Visiting Argentina

Now the question is how do you get the blue rate rather than the official rate? Usually, we recommend changing money at the ATM's, but NOT in Argentina. The ATM's will give you the official rate. There are two ways to get the blue rate that we recommend. 

1. Look for money change signs at restaurants and grocery stores - The signs will indicate if the business is changing money and at what rate. Do some research to find the best rate and then go for it. Right now, the largest currency is the 1,000 peso note which equals $3 at the blue rate. So be prepared for a lot of paper when you exchange money. 

2. Use your credit card - Argentina just passed a law requiring foreign credit cards to honor the blue rate. 

That's the email receipt from Uber, but look at the amount that actually ended up on my credit card. 

You may see some websites talk about changing money on Calle Florida in Buenos Aires. I don't recommend doing that. The cambios on this street are illegal and ripe for scams. It's much safer to change money in a restaurant or use your credit card. 

Keep in mind if you tip for a FREE tour, try tipping in USD. If you tip in pesos, you will end up giving someone a very small tip. 

And of course, always use the right credit card for your purchases and you may be able to erase the purchase altogether.