Just over two weeks ago, just before flying south to
Buenos Aires, I visited the
bank to withdraw US$2000 in large bills—fifties and hundreds. Other things
being equal, I’d rather not carry that quantity of cash, but in
Argentina
it’s an issue of economic convenience, if not necessity. For longer than I
care to remember, the
manipulation
of exchange rates by the country’s previous government required
extra-official work-arounds to avoid punishing prices and inflation (which, in
fairness, have not ceased under the current government).
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What Argentine banks think of you... |
The
perils of stashing bags of cash aside, changing money here long required
seeking informal currency change sites, known as
cuevas (“caves”) rather than banks and their ATMs, where one could
only obtain the disadvantageous official rate.
Cuevas paid the so-called
blue
dollar rate which, at times, was nearly double that. They did not charge a
commission, and did not require waiting in line at a bank or formal exchange
house.
There were shorter lines and less bureaucracy at bank ATMs,
such as the one at my corner bank in
Palermo, but there was
still a penalty for using them. Of course, my US home bank would charge a
percentage for each transaction and, moreover, the Argentine bank would collect
an even larger fee.
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My neighborhood cueva was closed over the weekend. |
Since arriving here, I’ve usually changed at my neighborhood
cueva—there are fewer these days, but
they’re still around—where a grumpy old man disappears into the depths of his office
and returns with the pesos I need. Friday night, though, in the interest of thoroughness,
I chose to use the ATM at the corner. After entering my PIN, I had to choose
how much money I would withdraw, and chose “Other” because I wanted more than
the A$2000 (about US$114) amount indicated on the display
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The bank on the corner is just two doors away from our Palermo apartment. |
It was not to be. When I entered the figure of A$3000 (about
US$170), the machine rejected it. When I reduced the number to A$2500 (US$143),
it did the same. When I capitulated to the original A$2000, it proceeded, but
then informed me it would impose a charge of A$106.20 (US$6.08, or 5.31
percent).
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Argentina's ATM fees are, arguably, punitive. |
In
Chile, I
regularly withdraw amounts of Ch$200,000 (US$319 at today’s exchange rate), and
in Uruguay I’ve withdrawn similar amounts in US dollars (which is not possible
at Argentine or Chilean ATMs). There is, of course, a one-time charge for each
withdrawal, but as a percentage of the total amount that’s relatively small. In
Chile, for instance, the charges range from Ch$4000 to Ch$6000 (roughly two to
three percent in the case of the withdrawal above).
In many ways, Argentina is more visitor-friendly than it was
recent years, but the banks’ continued insistence on multiple transactions and
high commissions is not. Note also that, despite legal requirements, many
Argentine businesses (including restaurants) still evade their obligation to
accept credit cards in payment for services. They will often accept payment in
US cash, but often at a lesser rate.