Preparing a new edition of any guidebook involves
challenges, and one of them is to present exchange rates and prices accurately.
My upcoming fourth edition of Patagonia
covers three countries, but Argentina
is the most challenging to predict because of its volatile politics and
economy. During the research period, its peso fell from six to eight-plus per
US dollar, but that’s not nearly the whole story.
Argentina’s made front-page news recently, after having
failed to persuade the US Supreme Court that its plans to pay debt from its
2001
bond default and 2005
restructuring conformed to the New York State laws under which much of that
debt was contracted. As of mid-2014, it was still unclear whether the country
was again facing default that might result in another peso collapse.
Given its foreign debt problems, due partly to limited
foreign currency reserves, President Cristina
Fernández de Kirchner’s government instituted a series of patchwork
measures to stem the flow of dollars, which Argentines often use to preserve
their savings in the face of inflation and a depreciating peso. One of these
was the cepo
cambiario (“currency clamp”), which
has made it difficult or impossible to purchase foreign currency – even for
overseas travel, where Argentines must use credit cards with purchases subject
to a punitive tax.
That’s led to an active black market for the so-called “blue
dollar,” which has traded for upwards of 12 pesos despite some fluctuations. At
that rate, Argentina is a relatively inexpensive country for foreign visitors,
but for those who don’t know their way around, there’s a certain risk in
changing at so-called cuevas (“caves”) in Buenos Aires and elsewhere.
Some cambios (formal exchange houses)
have been paying the blue rate, but real estate brokers may be another option. A
few businesses, most notably some hotels and restaurants, may accept cash
dollars at a premium rate.
Of course, using the “parallel” market also entails the risk
of carrying substantial amounts of US cash (Euros and other currencies are not
popular). Some purchasers will only accept 50- and 100-dollar notes at the blue
rate. For current Buenos Aires rates, check the website Dólar Blue or see the widget on the column
to the right; rates are usually lower in the provinces. Prices for the new
edition were calculated at the official rate, but are vulnerable to dramatic changes.
During the research period, Chilean exchange rates versus
the dollar slipped from roughly 520 pesos per dollar to the 550 range, and have
fluctuated only slightly. There is no black market and, barring unforeseen
circumstances, both exchange rates and prices should remain relatively stable.
The Falkland Islands pound, at par with British Sterling, is likely to remain
the most stable of the bunch.