Is it better to convert pesos to US dollars, pounds, or euros?

[hepdoll]

When you're earning Argentine pesos and you want to save some of them by converting to a foreign currency, with the plan to spend them in the United States as US dollars at some point in the future, is it better to convert directly to US dollars or instead to convert to another currency like pounds or euros, and then later convert to dollars when you're ready to spend?

I realize this will change over time, but I'd love to know what you guys think is the best way to keep the pesos from losing value right now.

 

[Napoleon]

EDIT:

I didn't read all of what you wrote. I just thought that you personally were going to buy dollars or Euros and you didn't know which to buy. Don't come to me with money management advice.

I would say Dollars, because (1) It's exchange rate usually has the slimmest margins (according to the signs on the sides of change houses/banks) and (2) The dollar is getting stronger in the short term.

But other people on here are much more "money people" than I.

 

[elhombresinnombre]

Whoa there! This goes alongside the 'if you have to ask the price of the car then you probably can't afford it' in that if you have to ask that question you really ought not to be thinking of doing anything other than plain vanilla money management. Think twice before handing your money over for someone else to manage because it's going to be much harder for you to get it back / get compensation in Buenos Aires than it is in the States - and it's hard enough in the States. And that old saying is still a good saying: if it seems too good to be true, it is too good to be true. Good luck, and may you and your money stay safe out there..

 

[TrevorCito]

Buy dollars, euros, pounds but don't keep pesos. I don't keep anything in pesos except what I need for living expenses.

 

[hepdoll]

Thanks so far, guys. No complicated money management here. (Did I say anything about that?) What I am wondering is if the usual standby of convert-to-dollars is actually the best way to go, and I thought that the folks on this forum would have some experience with that issue. If anyone has specific reasoning one way or the other, I'd love to hear it!

 

[gsi16386]

Dollars and Euros are for the birds....I invest all my pesos in Zimbabwean dollars. Any Casa de Cambio would be more than happy to help you out with that exchange.

 

[TrevorCito]

Thanks so far, guys. No complicated money management here. (Did I say anything about that?) What I am wondering is if the usual standby of convert-to-dollars is actually the best way to go, and I thought that the folks on this forum would have some experience with that issue. If anyone has specific reasoning one way or the other, I'd love to hear it!

I'm not sure you said anything about money management.

Yes, the locals I know prefer to hold dollars instead of pesos but even that is becoming risky. If you have a substantial sum of money to hold for many years then it's often a good idea to move away from pesos to another asset class. Be careful of the transaction costs here in Argentina as the casas de cambios often double dip on the spread and conversion fees. 2% is normal, anything more is robbery.

 

[ghost]

If you are are going to spend the money in the states in dollars, then convert to dollars and stick with one simple transaction. Otherwise any multiple exchange transaction fees will reduce your net and layer on additional risk. Be careful about where you get the dollars as BA is full of counterfeit US currency.

 

[AndrewG]

Dollars. Any conversion costs will completely swallow whatever gains you can possibly make.

 

[hepdoll]

OK! Dollars it is. Thanks guys!