Purchases with foreign cards

[lunar]

let's say an Argentine person takes 1000 pesos and converts it to USD while losing around 10 percent.

To put it in simply, banks do not sell you dollars at the official rate.

Well, technically there is a monthly quota to buy 200USD at the official rate, but after (cleverly designed) taxes the effective exchange rate is similar to the blue rate, so, it is not worth it.

 

[jblaze5779]

Doesn't it take way more Arg pesos to buy a dollar in Uruguay? Something like 400 or whatnot? I though I remember their exchange rate being crazy.

 

[sts7049]

this only sounds like a good idea for foreigners who dont have bank accounts here but also want to avoid the whole cueva/selling dollars/western union experience to get pesos. they give you a marginally better rate to use your card and you get to minimize your "risk" or time spend trying to exchange cash on the blue market.

otherwise i don't see the point?

 

[Dougie]

Locals earn in pesos, there is no reason for them to buy dollar blue here, they would buy Uruguayan pesos or US dollars in Uruguay with their ARS at the official rate then use their card here for a 21% discount over what they would be paying with a local card.

Think about it. If it worked like that people would be going to Uruguay exchanging pesos to dollars at the official, coming back to Argentina and then selling those dollars on the black market for 80% gain in pesos.

The rate for ARS to USD is even worse in Uruguay. The official rate doesn't really exist outside of exportation.

 

[Rich One]

Locals earn in pesos, there is no reason for them to buy dollar blue here, they would buy Uruguayan pesos or US dollars in Uruguay with their ARS at the official rate then use their card here for a 21% discount over what they would be paying with a local card.

It takes $ 880 pesos Argie to buy a dollar in Uruguay ?

°In Uruguay they ask $ 880 pesos argentinos for one dollar: the unusual exchange rate that awaits Argentines in the next season
Without tourism and with a permanent exchange crisis in Argentina, banks and exchange houses have no price reference and pay very little for Argentine pesos°
August 25, 2021

En Uruguay piden $880 por un dólar: el insólito tipo de cambio que espera a los argentinos en la próxima temporada

Sin turismo y con crisis cambiaria permanente en la Argentina, los bancos y casas de cambio no tienen referencia de precios y pagan muy poco por pesos argentinos

www.infobae.com

 

[antipodean]

El billete de $1.000 hoy equivale a USD 5: es el que menos vale entre los de mayor denominación en la región

El papel del hornero, que tiene menos de 4 años en la calle, puede comprar solamente a 5,10 dólares. El efecto de la inflación y la pulverización del poder adquisitivo de la moneda

www.infobae.com

Came across this interesting infographic that helps explain why giving tourists a better FX rate on plastic starts to become a necessity.
Most premium hotels in touristic locations in Argentina go for around US$200-US$250 a night. Domestic flights another US$200+. A Remise from the airport US$60+. At those prices you might as well be in Chile, Peru or Brazil or anywhere else in the world. Hardly a bargain.

Now, for those in the know of course they could get the blue or send themselves a WU to obtain ARS in cash at a big discount, but then imagine lugging around a huge wad of 500+ notes to get a more competitive price using the blue. The excess luggage fees would probably eclipse the savings! And as for the states coffers, it is like such a tourist never existed.

 

[lunar]

Most premium hotels in touristic locations in Argentina go for around US$200-US$250 a night.

Rooms in Hotel Alvear in Recoleta start from 35k ARS, This is 175 USD blue. And this is probably close to the top of the line.

... but then imagine lugging around a huge wad of 500+ notes to get a more competitive price using the blue...

Yes, huge wads of cash tied up with rubber bands in plastic bags. This is how business is done in any country that is struck by a hyperinflation.

It looks like the biggest problem people have around here is that they have too much cash to carry around. Just get a nice 29 inch rolling suitcase, for God's sake.

 

[antipodean]

El Gobierno les permitirá a los turistas extranjeros vender sus dólares a 180 pesos

El Banco Central creó la “caja de ahorro para turistas”, únicamente para residentes en el exterior. Al mismo tiempo, los argentinos que venden sus dólares en el mercado oficial reciben solamente 99 pesos

www.infobae.com

Tourists will be allowed to open bi-currency accounts in Argentina from abroad to use while here. The idea is to let them access the MEP or similar to buy pesos to put them and their cash inside the system. The account can have up to US$5000, however cannot receive any local deposits (except those made in USD in cash at a branch) or make bank-bank transfers to others nor access products like credit cards or fixed term deposits etc. Banks are not obliged to provide this service so will need to shop around to find who offers it once it launches.

It sounds like the account needs to be closed when you leave Argentina/ your stay is up... although not sure how this would be managed in practice.

Los turistas podrán abrir la cuenta en la modalidad no presencial o a su arribo al país y la identificación de los titulares se efectuará mediante el pasaporte o documento de viaje. La cuenta deberá estar a nombre de una persona humana residente en el exterior”, explicó el BCRA en su comunicado.

Agregó que las cuentas “podrán utilizarse para compras en comercios en pesos en el país, tanto mediante tarjeta de débito como a través de aplicaciones de banca digital” y para retirar pesos en efectivo. No admitirán depósitos, transferencias de terceros ni su utilización para realizar inversiones.

¿Cómo cargarán su dinero los extranjeros en sus “Caja de ahorro para turistas”? A través de dos vías: haciendo una transferencia desde una cuenta de su país de origen o un depósito de dólares en efectivo. El tope para ese saldo será de 5.000 dólares. En caso de que tenga dinero al momento de finalizar su estadía en la Argentina, deberá transferirlo a la cuenta en el país de origen antes de cerrarla, no pudiéndose efectuar retiros de moneda extranjera en efectivo.

Facilitan a turistas el ingreso de divisas y el manejo de sistemas electrónicos de pago

Los turistas extranjeros que visiten Argentina podrán abrir una caja de ahorro bimonetaria y acceder a los servicios financieros y medios electrónicos de pago.

www.bcra.gob.ar

I am curious to know what this could mean for WU rates etc and also if this is an ominous sign of things to come (tighter controls of money coming in, inflation/ devaluation exploding meaning digital transactions needed because not enough cash supply etc)

 

[jblaze5779]

Wonder if you could open one of these as a dni holder...?

 

[antipodean]

I'm not sure what kinds of cross-checks there would be. For a regular account the banks pull quite a lot of information up about you from various government agencies, other banks etc all linked to your DNI number. This one just needs a passport or travel document number to open. Now, if you have a DNI and a foreign passport(s), you will have different ID numbers and potentially different addresses etc making it harder to confirm your identity ultimately with just your name, DOB and nationality....

That said according the BCRA:

If there is a balance in the client's account in foreign currency at the end of their stay, the entity must automatically transfer it to the account in the country of origin and proceed to close it, not being able to make cash withdrawals from foreign currency. .

This makes me think these accounts will be given a time limit of like 180 days, then auto-destruct. Could be of limited use even if technically possible.