Black dollar basics

[natBA]

OK, I've been following the black market dollar threads for a while, and I've had a couple of "basic" (feel free to read "newbie") questions. I think they may be shared by others, I chose to open a new thread over hijacking one of the multiple existing ones.

So:

1) What is the risk involved? If AFIP has the name, address and phone number of someone selling dollars for 5 pesos, what can happen - worst-case - to this person?

2) Is there any (semi-official) point of reference, say online, for the current black market rate? Or is it all defined by whoever you run into?

(Finally and somewhat unrelated, I often see references to ATMs in Uruguay dispensing dollars. Anyone has a specific location? And what would be the charges for withdrawing from, say, a regular BoA checking account?)

Thanks all!

 

[ndcj]

1) What is the risk involved? If AFIP has the name, address and phone number of someone selling dollars for 5 pesos, what can happen - worst-case - to this person?

There's two levels of risk -- buying and selling occasionally as an individual is about as close to risk free as it gets. Conducting regular operations with a lot of people (in which you probably start to be legally defined as a financial entity), means that you open yourself up to a lot more risk.

2) Is there any (semi-official) point of reference, say online, for the current black market rate? Or is it all defined by whoever you run into?

It depends on the volume you are changing, the direction you're changing it in and your relationship with the other party. Check the "DOLAR INFORMAL" here for an estimate:
http://www.ambito.com/economia/mercados/dolar.asp

(Finally and somewhat unrelated, I often see references to ATMs in Uruguay dispensing dollars. Anyone has a specific location? And what would be the charges for withdrawing from, say, a regular BoA checking account?)

All Uruguayan ATMs dispense dollars to anyone. The commercial banks seem to mostly allow withdrawals of a maximum of about $US300 per withdrawal with a $US4 fee. Banco Rupublica (BROU) allows you to withdraw up to $US1000 per transaction with an unlimited number of transactions (up to your card's ATM limit, of course) with no ATM owner fee.

BROU ATMs are everywhere, in basically every town in Uruguay. There's a BROU ATM in the main street of Colonia.

 

[jimdepalermo]

Assuming you're not conducting regular operations, as ndcj points out, I think the biggest risk to both parties is probably counterfeit money.

I occasionally make purchases with dollars when the vendor offers a price or rate that warrants it. In these cases they always either photocopy the dollar notes or write down the serial numbers and ask me to sign an acknowledgement. According to merchants, there's a substantial number of phoney dollars floating around town.

The same is true with 100-peso notes. Make sure you examine them before accepting them. The central bank site at www.bcra.gov.ar describes legitimate notes in detail.

 

[John.St]

The same is true with 100-peso notes. Make sure you examine them before accepting them. The central bank site at www.bcra.gov.ar describes legitimate notes in detail.

More about how to spot counterfeit AR$ bills:
http://landingpadba.com/ba-basics-counterfeit-money/

 

[earlyretirement]

The big "black" casa de cambios that formally exchanged money have become VERY careful now. Most of them stopped taking on new clients last year or some this year. I deal with some of the largest in town and all of them will still work with me but they have told me that they stopped taking on new clients. Even friends and even if people vouch for them. They aren't taking the risk.

They tell me that they have been threatened with jail time if they get caught. This go around it seems more serious and they seem more afraid than before.

As far as Uruguay, yeah the other poster is correct. I haven't been there in a year or so but the last time I was there I had no problems withdrawing dollars with my ATM cards from the USA and Europe. I never tried with my Argentine ATM card.

 

[ben]

On the subject of counterfeiting, I just saw this report (from 2006) -
http://www.federalreserve.gov/boarddocs/rptcongress/counterfeit/default.htm

Some astounding figures in there, like Argentina being the second largest destination on the planet for USD (after Russia, tied with China). It's estimated to have $50 billion - that's 1 out of every 9 dollars outside the US, or about 1 out of every 15 in total circulation, including the US.

How much is a good counterfeit detector around here?

 

[intercultural]

Does anyone know if ATMs in Chile give out dollars?

 

[jimdepalermo]

Some astounding figures in there, like Argentina being the second largest destination on the planet for USD (after Russia, tied with China). It's estimated to have $50 billion - that's 1 out of every 9 dollars outside the US, or about 1 out of every 15 in total circulation, including the US.

And I thought there was only one set of 100-dollar bills that passed from escritura to escritura.