Daily Life Economics For A Poor Expat

[John1017]

I am moving to Argentina in March to marry my long time girlfriend, who is from San Miguel......
I lived in Argentina when things were relatively good from 2004-2006, and never really had to worry about day to day economics....

News, and expat forums have me worried and I'm not a worrier. (Talk of inflation, more crime, craziness,,should I be worried if I never worried when I lived in BSAs before?)

I just wanted to ask this forum for some advice..... From the research I have gathered on this forum and other sites this is what I have learned.

1. Bring as much USD as possible... (taking a colectivo from ezeiza to capital with a suitcase full of cash doesn't sound fun though)
2. Use Xoom and change money wherever you can get the blue dollar (either banks or casa de cambios)

Should I use cash for my day to day purchases such as groceries or should I use my debit card? Before when I lived in Argentina I always used my debit card and used the ATMs to get cash, but I don't think that was the best idea?
I know this has been covered a lot but I just thought it might be good to get an easy bullet list of how to deal with cash and purchases on a day to day level.

I like the idea of using a debit card instead of cash, because I don't really want to be walking around with a wallet full of cash.
Any help would be appreciated

 

[Dublin2BuenosAires]

Bring dollars, take a taxi from the EXE!...you'll be fine. Can't compare crime, other than to say that in a year and half nothing has happened to me. I genuinely do expect to be robbed at some stage in the years to come, but the govt may get us first. I think if you're wise and stay cautious you can cut the risk, but it can happen as it could in 2004. Plent of people who lost everything in 2001 were forced onto the streets then.

I use my debit card and generally use cash where ever they offer a better price in cash. Don't like to draw attention to myself by having a wallet full of cards or too much cash.

 

[Matiasba]

Crime is better than 2004. In 2004 the 2001 crisis was pretty recent, lots of people under the poverty line. Now, 10 years later of growth with inclusion, + huge social plans, etc, there still are poor people, but its another situation. I remember people begging for money in every corner, in every cafe, today that have changed, luckily.
If you survived crime in 2004, you ll be ok now.
About the dollar situation, that today is more complicated, but not that much. You will be ok once you learn the tricks.

The only tough thing clearly is inflation. The situation will get worse. I expect hyperinflation in the coming years. it might be a chaos politically also. I hope Im wrong, but I expect an inflation crisis like in 1989.
If the government can mantain inflation in 25%, and you wont be earning in pesos, then you have pretty much the situation solved.

 

[bigbadwolf]

Bring euros (if you can), not dollars as there's some uncertainty about the value of the US dollar as well.

 

[thorsten]

Yes, US$ cash is optimal as you can change it on a as-needed basis to pesos and you don't pay any fees to services like Xoom. For safety reasons, take a driver, not the bus from the airport and if possible get an apartment with a safe.
Don't use a debit card if its not a local one: you get ripped off. For bigger purchases you might want to use your girlfriends card, e.g. when purchasing things abroad (and the tourist $ is still better) or for shops offering x% discount for specific cards.
Regarding the wallet problem: I pay everything in cash but the max amount I walk around with is 1000 pesos which is less than 100 bucks, so even if you get robbed, its not a big loss and if its just for a normal day with transportation/restaurants/bar, you need typically way less.
I'd stick to US$ instead of Euros: the discussion about the stability of these currencies are always there (and mostly uninformed). The advantage of US$ is that its way easier to change as the market is bigger.

 

[citygirl]

Assuming nothing changes between now and March (which is prob an erroneous assumption)

Using a US debit card will get you 8 pesos to the dollar + you will get charged the foreign conversion fee (usually 3%) + you will pay an ATM fee here (20 pesos or so I think) + if your home bank charges you to use an out of newtork ATM.

Changing dollars at the blue rate wil give you 12.5 pesos to the dollar (that changes of course daily) and no other costs.

Obviously you don't want to use your ATM card. Bring cash and change what you need as you need it.

If you can get a local ATM card, that's great and then yes, use that as you get great deals frequently at supermarkets, etc. Change dollars as needed, deposit the pesos you get in your local bank account (only what you'll use that week) and then carry your ATM card. Rinse, lather, repeat.

Don't keep lots of pesos in the bank, don't use your int'l ATM card. Cash is king here.

 

[syngirl]

Using a US debit card will get you 8 pesos to the dollar + you will get charged the foreign conversion fee (usually 3%) + you will pay an ATM fee here (20 pesos or so I think) + if your home bank charges you to use an out of newtork ATM.

Actually I had to withdraw off my foreign debit card the other day for the first time in ages, I was shocked! On this end they now charge 48 pesos per withdrawal

 

[glasgowjohn]

I always change my Euros into Dollars before travelling to Argentina.. As Thorsten says above , the market is much bigger and the options are wider.

However if your extended Argentine family travel to Spain or Italy on a regular basis , you may be able to strike a direct deal with them

 

[citygirl]

Actually I had to withdraw off my foreign debit card the other day for the first time in ages, I was shocked! On this end they now charge 48 pesos per withdrawal

Wow - 48 pesos!!! I have used my US card like once in the past year so I had no idea. Even more reason not to use a foreign debit card!

 

[jeff1234]

I've been using Xoom and am happy with it. Today they're giving 11.23/ USD. Less a small transfer fee.
I'd like to hear if anyone has a better way of buying pesos without bringing in alot of USD.