Transfering USD to Argentina

[wstevens]

So, I will be moving to Buenos Aires next month and I'm still trying to understand how the whole dollar-peso money transfers work.
I'm going to be earning a pretty low salary (in pesos) in Buenos Aires, but I have an additional $4000 per month in income that is being paid to me to a US based account.
Can I transfer that money in dollars to Argentina if needed?
I also noticed that a lot of apartments charge in US dollars. Can I simply pay for the apartment's rent (let's say $2000 USD) using my Us account?

What else am I missing? As I said, I'm not living in Argentina yet, so please spell things out for me,

 

[AndrewWoodward]

Well it's going to be more complicated than you want. Others know more than me, but I'll answer a couple questions.

You can't simply "transfer" funds in. If you do that, the banks will just convert it at the government rate and that's what you get. But there are ways to get dollars in at a better rate - others here can tell you more.

As for apartments, it really depends. Be prepared for a struggle. Some want only USD once they know where you're from. Others want the blue rate. Others will split the difference. It just depends who you're dealing with.

Do you have any contacts in the city? Or are you just moving in blind? I'd recommend searching through the last five pages or so here and reading up. And taking it all with a grain of salt. Others will answer in more detail. But it's good to read up.

Remember you can bring dollars in, without declaring, up to 10k. I know that's really hard to do, and people obviously hate doing it. But you should consider bringing some amount in. Also depends how long you're staying...

 

[Napoleon]

So, I will be moving to Buenos Aires next month and I'm still trying to understand how the whole dollar-peso money transfers work.
I'm going to be earning a pretty low salary (in pesos) in Buenos Aires, but I have an additional $4000 per month in income that is being paid to me to a US based account.
Can I transfer that money in dollars to Argentina if needed?
I also noticed that a lot of apartments charge in US dollars. Can I simply pay for the apartment's rent (let's say $2000 USD) using my Us account?

What else am I missing? As I said, I'm not living in Argentina yet, so please spell things out for me,

Short answer is "YES".

Longer answer is "You will have to pay about 35% to 40% in commissions.

Paying Apartment Answer: Pay from your account to an account OUTSIDE of Argentina and it will be no problem.

SUMMARY: Only bring US DOLLARS into the country ON YOUR PERSON. (Legal limit is US$9,999.99*)

*Everyone says that it's "US$10,000", but the signs say "Under US$10,000 WITHOUT DECLARING IT", so that last penny is up to you.

 

[citygirl]

Actually, you can legally bring in more than 10K, you just have to declare it. You will want to bring in as many dollars as you can.

The legal exchange rate is 4.62 pesos to the dollar. The "blue" rate is about 6.25 pesos to the dollar. So obviously if you have dollars to exchange here, it works to your benefit.

I assume if you are working here, you have a DNI/work visa. Usually this is from a larger company. Are they going to act as guarantia for your apt? They should be able to assist.

I assume you realize that if you take out money from ATMs here from your account overseas, you will be hit with a (I think) 19 peso bank fee for each withdrawal, plus whatever your home bank charges you, + you will get the official exchange rate. It's costly.

 

[Iznogud]

Bring cash
Have your employer or someone else rent the place for you if possible or stay off the books
Fly under the radar.
Mum's the word.

If your stay is brief or discrete enough you might be able to keep your cloaking device on at all times. Otherwise, the aggravation is hardly ever worth the benefits, if there are any.

 

[DavieW]

Short answer is "YES".

Longer answer is "You will have to pay about 35% to 40% in commissions.

Well, let's not get carried away!
You'll pay 1%, with a USD100 minimum.

Not sure what you're planning to do with USD4000/month.....but you'll be living like royalty!

You have PM wstevens.

 

[John.St]

... if you take out money from ATMs here from your account overseas, you will be hit with a (I think) 19 peso bank fee for each withdrawal, plus whatever your home bank charges you,...

Depends on your card and bank back home.

Were I to use my Master creditcard, I would be charged the AR$ 17.80 + exchange fee (2%) - not surprising, as the Arg. bank won't see their money until next month, on average they provide 19 days of credit in a 25% inflation/year environment.

Using my VISA debitcard in HSBC, I am only charged the 2% but my account at home is charged 2 or 3 days later.

 

[PhilipDT]

Can I transfer that money in dollars to Argentina if needed?

Not easily but you can transfer that money in at a much higher rate than the official cambio. PM me for details.

I also noticed that a lot of apartments charge in US dollars. Can I simply pay for the apartment's rent (let's say $2000 USD) using my Us account?

Usually not, but sometimes you can. Dollars give you a bargaining position try to get a 15% discount on the price if you're paying with green backs.

 

[Napoleon]

Short answer is "YES".

Longer answer is "You will have to pay about 35% to 40% in commissions..."

The legal exchange rate is 4.62 pesos to the dollar. The "blue" rate is about 6.25 pesos to the dollar. So obviously if you have dollars to exchange here, it works to your benefit...

I assume you realize that if you take out money from ATMs here from your account overseas, you will be hit with a (I think) 19 peso bank fee for each withdrawal, plus whatever your home bank charges you, + you will get the official exchange rate. It's costly.

Well, let's not get carried away!
You'll pay 1%, with a USD100 minimum.

Not sure what you're planning to do with USD4000/month.....but you'll be living like royalty!

Well my bank (Citibank) charges a "3% 'Conversion' fee", but no "user fee" if I withdraw money from Citibanks in the city. (And even then, you have to understand which ATMs to use, NO "Banelco"s.)

So that would take AR$4.62 down to AR$4.48.

Then we'll take AR$6.25 as the "Blue Rate" and work from there.

6.25 - 4.62 = 1.63

1.63/6.25 = .2608, or a 26% "Commission".

I was thinking of the percentage MORE that you could be getting on your exchange. (1.63 / 4.62= 35.2%)

Either way, you're leaving a LOT of buying power on the table by withdrawing money from an ATM.

But I stand corrected. 26%, not "35%-40%".

PS- Don't buy something "TAX FREE" thinking that you'll ever see those taxes back. Just sayin'.

 

[wstevens]

Thanks a lot to all of your for your help. I think I have a better understanding of the situation then. From what I have read in this post as well as in other posts. The best things to do are:

-Bring lots of cash if possible.
- Use services like Xoom to get a blue chip exchange rate.
- Try to get an apartment, where I can pay my rent to an account that is outside of
Argentina and use my dollar position to negotiate a lower price.