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.
8 comments:
One of these days you'll start using Xoom, get a better exchange rate, and be able to bring in as much as you want on each transfer....
I have used Xoom to send money here, but Argentine family and friends have found it awkward to collect. Also, it's not very useful outside Gran Buenos Aires and a few other metropolitan areas, and it's virtually useless in Patagonia.
Certainly fewer locations to pick things up in less populated areas, but not non-existent. As to your Argentine family/friends having difficulty, I can't comment other than that I have yet to have anyone whom I've sent money to have a problem, here or in other countries. You can also transfer money to virtually any bank account in Argentina directly rather than having to deal with cash pickup. And then you/they can withdraw without fees from the account account. And, your post talked specifically about withdrawing money from a bank branch in Palermo, and Xoom here in the city is pretty darned easy.
Xoom's network is wider than it used to be, but there are still only four outlets in town here, and that can't match the convenience of a corner ATM (remember, I'm usually writing for sojourners).
Errr... totally not accurate. There are 19 locations within BA to use, and plenty in other places. I can see that what you did is chose the option to look at things listed under Capital Federal, but if you look under Buenos áires, there are 14 more. And while yes, it's more convenient to use an ATM, it's notably more expensive, and has the extraction limitations that Xoom doesn't. You posted about a problem, something that's difficult, I offered a solution. You want to argue that your problem is more valid than a workable solution, go for it, it's your blog. I've recommended Xoom to probably over a hundred visitors to the city over the last few years, not one of them has had difficulty in using it.
Only four appear in town at first, and then you have to go to another page to find additional sites - still less "convenient" than an ATM. I'm merely suggesting that Argentine banks are more out to rip you off than their Chilean and Uruguayan counterparts, but I will add that our contractors here begged us never to use Xoom again.
I could understand that with contractors - you're talking about transferring, mostly likely, a large amount, and that may be an issue for receiving it. But as a suggestion for visitors, who likely only need to transfer a few hundred dollars at a time, it's a very viable option. Oh, and it works in Uruguay and Chile too, plus many other countries - big plus if you're traveling to multiple places.
Oh, and a last point, Xoom typically (thought not always, as the rate is variable) gives you a higher exchange rate than the banks do, plus having a lower transfer fee.
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