Buying Dollars

[owenaj]

Hello!

Not sure if you guys can help. I've just been offered a job in Buenos Aries. It's a great offer, but the salary is to be paid in Pesos (with quarterly reviews for inflation etc). I had asked to be paid in dollars / euro (in light of the limitations on exchange and getting money outside the country) but this is not possible. I have expenses which need to be met in the UK.

Now that Macri's government has lifted exchange restrictions, how easy is it to transfer Pesos into Dollars / Euros and move them out of the country?

Also, are there still effectively two exchange rates?

Thanks in advance for any input.

 

[Girino]

There are various recent threads about this.

1. It is as easy as a bank transfer. However, bank fees still applies.
2. Yes, there are effectively two exchange rates, however their difference is now about 5%. Bear in mind that when you are involving international transactions there are also banking fees (Argie bank, your bank, intermediary bank, slightly penalizing conversion rate compared to the official rate).
3. (even if there is no third question) - You can't still have bank accounts in foreign currency, so there is no way to have your salary deposited in foreign currency in a bank account in Argentina. Everything gets converted to pesos and then you are free to either spend the money or transfer them abroad (they will get converted to the foreign currency). Not sure about using an Argentine credit cards to pay bills in the UK. Might or might not worth or come with considerable limitations in terms of daily amount you can spend.

 

[RichardP]

Or you can find a source that needs a regular supply of pesos in Argentina and is willing to transfer your currency of choice into your account abroad.

 

[ben]

Or who do this with private people who do this, for a fee, which should still be competitive with the banking system.

I can provide some specifics via PM.

 

[Girino]

Or you can find a source that needs a regular supply of pesos in Argentina and is willing to transfer your currency of choice into your account abroad.

True, but since the OP is from the UK regular transfers from a private bank account on another private bank account could be raise some flags (me think), so better check this well on the fiscal side.

 

[owenaj]

Thanks very much indeed, guys. This is extremely helpful.

I'll let you know if I take the gig!

 

[mjohnstone]

Better have the company double check with their bank since I understand you can have a USD currency account in most major argentine banks. Most companies will open a bank account/package (savings/checking, credit card) for you where your salary will be deposited.

 

[mikic007]

I don't think you can be paid in any other currency than peso here in Argentina. At least that's what I heard many times, including my boss (of course). Someone can clear this, since I don't know the law.

What I understand, foreign companies pay some money in pesos, that all is legal, and the rest outside of the country. I know few people earning that way.

 

[wongjoh]

3. (even if there is no third question) - You can't still have bank accounts in foreign currency, so there is no way to have your salary deposited in foreign currency in a bank account in Argentina. Everything gets converted to pesos and then you are free to either spend the money or transfer them abroad (they will get converted to the foreign currency). Not sure about using an Argentine credit cards to pay bills in the UK. Might or might not worth or come with considerable limitations in terms of daily amount you can spend.

Just for the record, the above is not entirely correct. You CAN have Argie bank accounts in USDs and they are a standard feature with employment-related bank accounts (I believe its a requirement for employers to pay for a bank account for their employees where salaries are deposited). Mine is with Santander Rio and I use to deposit pocket change dollars (when I cannot get a full 100-dollar bill) whenever I buy at the official rate.

As to being paid in USDs by an local Argentina company, my understanding so far is that this is not allowed. However, laws may have been relaxed now that Macri has taken over. Best to check with the company's accounting department. There are, of course, other overhead (financial and procedural) costs to paying out in USDs, as they still have to report your compensation and pay employment taxes in pesos.

Also, it should now be possible for a foreign company/yourself to wire dollars to your USD-denominated account in Argentina. However, if done regularly, it will certainly require paperwork justification from the bank so they can comply with AFIP (taxes) or UIF (money laundering) regulations. Best to speak with a bank representative for their advice on how best to do this.

 

[owenaj]

Thanks again for the information.
The company will be paying me in Pesos and in Argentina.
I am planning to export a portion of my salary each month to cover ongoing expenses in Europe.
It sounds like this should be possible based on what I'm reading here.