Lower Exchange Rate For Smaller Usd Denominations?

[LostinBA]

I received an unwelcome surprise changing USD in my local cueva today. Evidently, today's 6.1 rate is only good for 100 USD bills and they give only 5.9 for 20 USD bills. Now I know Argentines have so many angles that it's impossible to calculate in advance all the ways they try to take advantage of foreigners so I'd like to know if anyone else has heard of this and whether these rates make sense. It was 6.15 only 3 weeks ago.

 

[Davidglen77]

I've known that they will give a lower exchange rate for bills less than $100 U$D, as well as a lower rate for bills that are in bad condition. The guy I used to go to would give me the same rate if there were $100 U$D plus a few smaller bills. But the times I had only smaller bills, he would give me the lower rate for everything.

 

[PhilipDT]

First of all its been a violent month or so for the USD. 6.15 3 weeks ago was 6.4 6 weeks ago and may have been 5.9 2 week ago. Secondly, volume makes a very big difference because margins are small, if a guy buys for 6.1 and sells for 6.3 that means he makes 100 pesos on a 500 dollar transaction but only 4 pesos on a 20 dollar transaction which makes it hardly worth his time. Thirdly most argentines that are buying dollars are using them for large purchases or smuggling them out of the country, 20's are a lot less convenient than 100s for both purposes. 10k USD in 100 bills fits nicely into a pair of socks, in 500 bills, not so much.

So, yes, the distribution of rates make sense. That said 5.9 is low for today, even for 20s and low quantity.

 

[Rich One]

The exchange rates vary daily up and down. The rates for smaller bills is lower, as well as for wrinkled, marked. or damaged by storage in humid places. The spread bet buy and sell is normally 20 cents for middlemen

 

[Greg2231]

I received an unwelcome surprise changing USD in my local cueva today. Evidently, today's 6.1 rate is only good for 100 USD bills and they give only 5.9 for 20 USD bills. Now I know Argentines have so many angles that it's impossible to calculate in advance all the ways they try to take advantage of foreigners so I'd like to know if anyone else has heard of this and whether these rates make sense. It was 6.15 only 3 weeks ago.

not only have I experienced it in Argentina, but also in many other country's, as to the rate I got 6.20 on Friday.

 

[jjsto]

To make sure you are getting a fair rate, u should ask for both a bid and ask every time you go. Then make a judgement based on the size of the spread compared to the spread elsewhere. Paying less for bills smaller than $50 has been normal for quite some time.

 

[TheBlackHand]

Yeah, that sounds about right. Some places will also pay out less for damaged bills.