Devaluation of the Argentine Peso, a situation that makes Argentina become cheap for tourists, especially after the COVID-19 pandemic.
Argentina begins to be a source of conversation among tourists, since, for some years, the costs of vacationing were moderate to high compared to the rest of Latin America.
From successive devaluations, which have not yet ended, it is becoming more and more attractive to vacation in Argentina.
Whereas, in 2016, the cost of a coffee in Buenos Aires was the same as in Monaco (about 2 euros); At the end of 2020, a coffee was available in Buenos Aires for 70 euro cents.
It is important to clarify that there are three different exchange rates: two official rates and one informal rate (known as the “Blue” rate). This is due to a currency value split, where the government aims to pay fewer pesos in exchange for dollars to profit from the difference. It’s worth noting that the euro does not have an informal rate.
One legal way to exchange currency is through banks or exchange houses, but the exchange rate offered is the worst option. The other legal option is through payments with cards, where an exchange rate that is 70% better than the official rate is applied. You can find more information here.
that there are 2 different quotes, a formal one, where the exchange office gives half the pesos to the tourist than what an informal exchange (or Blue value) would do. This is due to a doubling of the value of the currency, since the government intends to pay less pesos in exchange for dollars, to get the difference. Namely, the euro does not have an informal format.
The post-COVID-19 situation still does not have a clear end, and the over-issuance of Argentine pesos to be able to subsidize affected sectors augurs an absolute certainty of an even greater devaluation of the peso in this new year.
This situation creates a unique atmosphere for the tourist who dares to travel, since hotels, restaurants and tourist attractions will seek to compete for foreign currencies in order to continue subsisting and further reducing the costs of tourism in Argentina.