How do you get dollars in BA?

[surfing]

The interbank rate is the rate that the Arg gov't sets. That isn't a real free market rate. They set that rate. And if you are using your US credit card here in Argentina, you are gifting money away to the Argie government.

If I was a landlord who charges rent in dollars, it just isn't my business where the tenant gets his dollars from. Maybe he gets it at 4.5 by going to AFIP. Maybe he gets it illegally in the black market. Maybe he gets it legally on the bond market. Maybe his brother brings it to him in a suitcase. I don't know and I don't care. I just want my dollars each month.

I have a suggestion for expats who don't know how to get dollars in Argentina: DON'T RENT AN APARTMENT IN DOLLARS. RENT AN APARTMENT USING PESOS. PROBLEM SOLVED!

I don't have these problems. I am referring to tourists on short-term rentals. We disagree as to who should take the hit.

 

[el_expatriado]

Everything said, aside from paying for my rent through paypal or regular wire transfer, does anyone have any advice for sorry people like me who have to access all of their cash via ATMs where we get less than 4.5 pesos per?

My suggestion would be not to use the ATM, because you are getting paid less than what your dollars are worth.

 

[el_expatriado]

I don't have these problems. I am referring to tourists on short-term rentals. We disagree as to who should take the hit.

The free market will decide. The tenant and the renter will negotiate and that's what will decide this. If the tenant can get another place easy, he will leave and won't accept the 6:1 terms. If the landlord can easily find another tenant, he can tell the tenant to take a hike.

Someone will have to give and that will depend on the individual circumstances of each. For me it is a renter's market right now. I think the tenant has the power to negotiate good terms.

FYI, my tenant pays me in pesos and if I demanded dollars, they'd probably tell me to get bent.

 

[Shwidelson]

My suggestion would be not to use the ATM, because you are getting paid less than what your dollars are worth.

This much I realize. What are the alternatives? Wire transfers only? Would that be through Western Union, and does that mean I would be receiving US dollars? Forgive my ignorance. Thanks much.

 

[Crema Americana]

The truth is the economic and currency situation in Argentina makes long term business dealings unfair for BOTH the renter and the landlord.

It is not fair for a renter to agree to pay a certain dollar amount, only to find out that dollars are impossible to get because the government decided it to be so. It is not fair to the landlord either to have to accept pesos instead of dollars at the official rate, when buying dollars at the official rate is nearly impossible.

Rent shouldn't get cheaper by month, nor should it suddenly get more expensive. It's times like these and people need to be a little flexible and understand the situation... the official rate is not the real value of the dollar, the peso is continuously devaluing, and inflation is hitting everybody.

Personally I think that at the time of the contract the landlord (who owns the property and has the right to rent it at whatever price he wishes) should set the price in both dollars and pesos, leaving it up to the tenant to decide how to pay. You probably shouldn't look at it like an increase in the peso price, but rather a discount for paying in dollars since dollars are hard to get and wanted by everyone during these unstable times. Remember landlords were used to always getting paid in dollars when dollar were relatively easy to get for Argentines and foreigners alike. They've had to make adjustments, too.

There's plenty of apartments to shop around... if a landlord prefers to let his apartment sit empty instead of accepting a lower exchange rate, that's his prerogative. Prices should settle. Anyone who is coming for a truly short period of time should have the cash on them and pay the cheaper dollar price. As long as the terms are clear at the signing of the contract and both sides are informed and agree, it's a fair deal.

 

[YanquiGallego]

Schwidel- The irony of it is that if you did opt to wire your land lord the money via western union, western union will pay them out in pesos at the official rate.
So even if you did send 800 dollars, once that amount hits Argentina, once they go claim it, they will get the official echange rate to the peso:dollar.

 

[el_expatriado]

Schwidel- The irony of it is that if you did opt to wire your land lord the money via western union, western union will pay them out in pesos at the official rate.
So even if you did send 800 dollars, once that amount hits Argentina, once they go claim it, they will get the official echange rate to the peso:dollar.

Yes, but if you wire the funds, it's the landlord's problem not yours. You tell them that you have $800 USD that can be wired to an account of their choosing, either inside or outside Argentina, they can decide. Then the ball is back in their court.

The exchange rate that they get paid for those dollars is their problem, not yours.

 

[el_expatriado]

This much I realize. What are the alternatives? Wire transfers only? Would that be through Western Union, and does that mean I would be receiving US dollars? Forgive my ignorance. Thanks much.

Some people use Xoom (you get a rate of 5.6, which is not bad), other people use a cueva. Really sophisticated people (i.e. to move $100,000+ USD) buy dollar denominated bonds outside Argentina and then transfer them into Argentina and sell them for dollars here.

Do some searching. If you can't find any way to get USD here, send me a PM and I will help you out.

 

[HenryNisental]

You can also travel to near Colonia, Uruguay.
The ATM´s there will give you USD, costs 460 pesos using Buquebus and less than that using Seacat. You can change the USD to pesos there.
Exchange rates in Colonia (purchase and sale prices):
USD 20.60 22
ARG 3 4.2
You can get Euros too.
Henry

 

[jasonphos]

This much I realize. What are the alternatives? Wire transfers only? Would that be through Western Union, and does that mean I would be receiving US dollars? Forgive my ignorance. Thanks much.

Hey Shwidelson,

You have a very valid question. First of all, one detail that I'm not clear on is whether you already have a signed contract in Dollars, or whether you are still negotiating?

To answer your question, no you will not be receiving dollars through Western Union. They will give you pesos, and as other posters have said, the rate may be around 4.95 or 5.0 right now. The only way to get dollars like you are saying is through private financial institutions, and that is the way pretty much everyone in the know does it.

If you already have a signed contract in Dollars, then I suppose ethically you should be paying your landlord in dollars.

Well then, I theorize (although I'm not certain because I'm in the U.S. now and not that close to the action) that the Private financial institutions that do money transfers are looking for people like you, and they would allow you to transfer dollars to their bank account and then hand you dollars in cash, for probably low fees (I haven't checked for sure, but that is my guess. I guess that because going the other way, they are charging 5 or 6 percent, when historically they have charged .5-2%). The way this works, in case you don't know, is that you have a friend or professional (lawyer, escribano) that you 100% trust introduce you to their private financial institution, and then you go there and do your transactions.

If you can't get dollars this way, and you already have the signed contract, then I think you should consider the Landlord's offer of 6 pesos to 1 dollar as a reasonable, negotiable offer. Here is how I would negotiate with him: Tell him that 6.0 is the rate to buy dollars on the open market, but it isn't fair for you to pay the buy rate. Instead, you should either be paying the sell rate, or somewhere in between. Of course, how to determine the sell rate? It is kinda hard, especially with the Government telling these guys NOT to transact, and they dropped the sell rate from 5.75 or 5.80 down to 5.50 or 5.60 just from this Government pressure. Anyways, you could still float the idea to him, so if we take 5.60 and 6.0, your rate would be 5.80.

Finally, if your contract is in Dollars, and you have no way to get dollars right now, then before you INSIST to your landlord that you can only pay him the "official" rate of 4.50 and change, explain the problem to him, that you can't get dollars and that when you use an ATM card to withdraw, you only get 4.50. Maybe he'll offer a solution? Because while it may not be "your fault", it isn't "his fault" either, and so personally I don't agree with the other posters that say your Landlord is unethical. If your contract is in dollars, then I basically agree with el_expatriado, that he has made you a reasonable offer, except for my caveat above about trying to negotiate it down to 5.80 or so.


If you haven't yet entered into the contract yet, then I think his offer is pretty reasonable, just as el_expatriado said, yet at the same time the other posters on the board have a point as well. This guy sounds like he wants to cover his own tail, and leave all of the work for you, and so you might could negotiate a little bit. Talk to him about the problem.

HOWEVER, no matter what happens, you still have the problem of how to get the best deal for you, and again I think a private financial institution that gives you dollars would be the way to do it. I'm not even clear if you are already in Argentina or not, but I would recommend that you find some friends or professionals that you trust, hang out with them some, and then mention your plight that you need to get dollars into the country from your foreign bank account. A solution is likely to present itself, but be careful because while this is the way things work here, there is always the chance for scams when you are dealing with cash, and when you are in Argentina

Jason