Buying Pesos Uruguayos For Trip

[Montauk_Project]

So we are planning for a business trip to Montevideo (thanks to all who have sent advice on another thread). My husband was authorized to buy pesos uruguyos from the AFIP (3000 pesos worth). However, when looking at the exchange rates, I am wondering if it makes sence to get them at the offical rate in Argentina:

http://www.cambio18.com/index.php
An exchange house in Montevideo says they pay 1.55 pesos Uruguayos for every peso argentino. When we were there about two months ago, for a film festival, that was about what we were able to get.

but checking with the central bank here, I am getting that 1 peso argentino is worth 0.25 pesos urgugayos if I buy in Argentina. http://www.lanacion.com.ar/economia/divisas (double checked with central bank, those rates are correct). And then you have to add on the 35% surcharge.

In other words, 1 peso ar is worth 6 times more in Uruguay than in Argentina.

My husband insists that this cannot be correct, that I am doing my math wrong. Am I?

(I know that changing dollars gets you a better rate in Montevideo, but I am asking about pesos because that is what we have).

 

[Matiasba]

Dollar in Uruguay is 23 pesos uruguayos (and going up).

Do not take pesos argentinos, they exchange them at a very unfavorable blue rate, they accept it almost everywhere, but very expensive.

 

[Montauk_Project]

Thanks Matias, we know that, my question is does it make more sense to exchange pesos ar for pesos ur in Argentina or in Uruguay, being that we are authorized by the afip to buy them.

 

[Rich One]

I would buy dollars turista at $11,02 at the Central Bank and pay there in dollars !

 

[Matiasba]

Exactly, if you can go with dolars instead. Pesos argentinos have a very bad exchange all over uruguay, the minimum is dollar blue, and not always is a good rate.

If not I would go here to some casa de cambio and buy ur pesos here (better than buying ur pesos there).......

 

[internationalguy]

They got the AFIP authorization for UYU... getting dollars won't fly....

In my experience here's the thing.... Everyone will take ARS in Uruguay but... they will do it at a very very bad rate. I call it a reverse blue rate..... Essentially..... you're giving up about 30% of the purchasing power based on the official rate. I've done the math before but I don't have updated figures. Buy the dollars in B.A. your mistake might come from the fact that the spread is huge. It's so big for a reason. They need to make a lot of money taking your Rocas for them to justify the cost of having them sent to BA to be exchanged at the blue rate. Or exchanging them at the blue rate locally. Whatever it is they do.

 

[internationalguy]

http://www.cambio18.com/index.php

They seem to have a calculator for your transactions.. Try trading ARS and USD... just for reference. .... you're getting a rate of like 9 by selling USD and turning it into ARS... If you want to buy USD with ARS... you'll pay almost 16

 

[PhilipDT]

So we are planning for a business trip to Montevideo (thanks to all who have sent advice on another thread). My husband was authorized to buy pesos uruguyos from the AFIP (3000 pesos worth). However, when looking at the exchange rates, I am wondering if it makes sence to get them at the offical rate in Argentina:

http://www.cambio18.com/index.php
An exchange house in Montevideo says they pay 1.55 pesos Uruguayos for every peso argentino. When we were there about two months ago, for a film festival, that was about what we were able to get.

but checking with the central bank here, I am getting that 1 peso argentino is worth 0.25 pesos urgugayos if I buy in Argentina. http://www.lanacion....conomia/divisas (double checked with central bank, those rates are correct). And then you have to add on the 35% surcharge.

In other words, 1 peso ar is worth 6 times more in Uruguay than in Argentina.

My husband insists that this cannot be correct, that I am doing my math wrong. Am I?

(I know that changing dollars gets you a better rate in Montevideo, but I am asking about pesos because that is what we have).

You should triple check, you're not only doing the math incorrectly, you're also reading the numbers incorrectly as well.

When you see the Compra/Venta price keep in mind that the venta is how much that currency is being sold for by the banks, the compra is how much those banks will pay for it.

So first of all $0.25 is not even part of the discussion, it's $0.31

Which means that

If you have have ARS $10, you can buy 32 UYU (10/.31). The rate you were quoted by the casa de cambio in MVD was 1.55 UYU for each peso argentino. So if you took ARS 10 over there, you would get 15.5 UYU, which is less than half. Even adding in the surcharge it's still much cheaper to exchange here.

Hope that made sense.

 

[Montauk_Project]

Thanks Philip! that does make sense, I was completely off on the math.
Unfortunately, it looks like our trip has been cancelled.