You can add on a roundtrip to Buenos Aires from Lima for $415 and get a complete roundtrip from Miami to Buenos Aires for about $717. Not a bad deal…
UPDATE: American Airlines is also running a fare sale to Latin America, but unfortunately not to Buenos Aires. You can however fly coach from New York or Miami to Montevideo from $931 and (even better) business class from only $1949. Tickets must be purchased by May 8, 2013 for travel between May 15 and June 6, 2013.
One of our more frequent topics is on the “dolar blue” rate in Argentina. This is the unofficial rate at which the US dollar trades in Argentina. Yesterday it hit a new record high of U$S 1 = ARS $9.40. That’s an 81% difference to the official rate and a great reason never to use your credit card or ATM in Argentina.
There are a few ways to take advantage of the dolar blue rate that we have discussed before:
Bring US dollars and convert at the blue rate. Pros: the best rate available Cons: theft, counterfeit bills, finding a cueva to exchange, technically illegal
Use a money transfer service like Xoom or Azimo and get a rate close to the blue rate. Pros: legal, transfer from your bank account overseas, relatively easy Cons: not available in all countries, must physically pick up money, paperwork required, rate good but lower than blue rate
A new method has emerged as well using the relatively new digital currency, Bitcoin. Bitcoin is a decentralized currency and payment system that is not under any government control. Check out the video below for a more detailed overview (or check out this Bitcoin course for a much more in-depth explanation):
Ok, so now you know that you know what Bitcoin is, how can you use it in Argentina to get the blue rate?
Argentines are not very fond of holding pesos – especially with inflation estimated at 25% – 30% per year. And with government restrictions on purchasing foreign currency or gold, many Argentines see Bitcoin as an investment opportunity that is outside of the government’s control. Unfortunately, the currency controls also make it impossible for Argentines to purchase Bitcoins online with pesos. This is where the trading process comes in. You purchase Bitcoins and then trade them for physical pesos at the blue rate.
Watch this short documentary film, “Bitcoins in Argentina,” for a great overview of the process:
Ok, so now you’re ready to trade Bitcoins, right? There’s a few steps you’ll need to take:
1. Get some Bitcoins
In order to get Bitcoins, you need to set up an account and purchase them. We’ve found Coinbase to be a great site to do this. This may take several days to set up, so don’t wait for the last minute.
2. Find someone to trade with There are a few methods for finding a trading partner in Argentina – the Bitcoin Argentina Mailing List, LocalBitcoins, Bitcoin Argentina on Facebook, and Bitcoin Meetup. The mailing list seems to be the most active, but LocalBitcoins is growing rapidly. Once you find a trading partner, agree on the rate, pick a spot to meet and trade away!
So, what are the pros and cons of using Bitcoin? Pros: relatively easy to use, completely anonymous, high exchange rate, works for people from almost any country, no need to carry cash, no paperwork Cons: relatively new currency with high level of price fluctuation, must find a trading partner, must meet in person for exchange, false bills
The biggest con in my mind is the high number of price fluctuations and crashes that Bitcoin has experienced, however I think this can be somewhat offset as the seller by buying and selling in the same day. The buyer holding the Bitcoins has a lot more exposure to these price fluctuations. As for finding a trustworthy trading partner, a lot of the resources above will let you see what other trading the person has done before, and be sure and count the money before sending your Bitcoins.
Are you ready to start trading? Let us know in the comments if you do and what your experiences have been.
- Thanks to this Reddit post for more info on Bitcoin in Argentina.
Azimo is a new service that allows anyone from the United Kingdom to send money to Argentina - and get the blue rate!
We’ve previously written extensively about Xoom, but that only works for those with a US bank account. Well, now is the time for Brits to get in on the money-sending action too.
Azimo allows you to send money using any UK debit card, online or telephone banking, or by going into a Barclay’s bank if you’re in the UK. You can then pick up the money in Argentina from a wide range of locations (a lot more than Xoom offers) or send it directly to a bank account. Please note that while their site states that you can pick up US dollars or pesos, that is not correct. You can only get Argentine pesos.
So, what is the rate? Currently it’s an impressive £1 = ARS $12.3811 $13.2142 with their standard £5 transfer fee. Compare this to the official rate of £1 = ARS $7.9074, and that’s an extra 53% on your money! There is currently a limit of £899.99 every 30 days, but that can be raised by providing proof of identity.
For a limited time, if you use the promotion code MONEY2013 when sending, you’ll get the transfer fee (£5) for free as well. (You may also try the codes: AZIMO2013 and DINHEIRO2013.)
Here’s a quick overview video of their incredibly simple process:
Go give Azimo a try now and let us know in the comments how it worked out for you.
(Please note that I earn a referral fee if you use my links above. It’s a great service and I appreciate the support!)
Copa Airlines currently has fares from New York (JFK) to Montevideo, Uruguay (MVD) for only $374 including all taxes and fees. This is a pretty amazing price, and if you have friends who want to get to Buenos Aires, it’s only a short plane or ferry ride from Montevideo.
To find dates that this fare is available, search on ITA Matrix and select “See calendar of lowest fares” around the dates you’re interested in. Once you find the fare you want, you’ll need to book it on Orbitz or another site as ITA does not handle bookings.
UPDATE: This deal is dead.
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