Since the 2001 economic crisis, Argentina works on cash. Except for large grocery stores and some restaurants, few retail shops or restaurants accept credit cards. As someone who pays for everything possible with a credit card at home -- so I don't have to carry cash -- this is strange for me.
On the rare occasion that I can use a credit card (Capital One Master Card, because it is one of the only U.S. cards that does not charge fees for international transactions), I have to show picture ID. They do not seem to look at the picture to confirm that the card isn't stolen, but only to write down the ID number. Husband and I laugh about this -- I cannot imagine that the number on my Ohio driver's license provides any valuable information here.
The value of the Argentine peso to the U.S. dollar is about 4/1 right now. (Oh, they also use the U.S. dollar (USD) sign for the peso value, which I find slightly confusing at this point). Either Husband or I go to the ATM almost every other day in order to have enough cash on hand for day-to-day activities. It's difficult to wrap my mind around the fact that carrying $500 in pesos around in my wallet is only $125 USD. One-hundred-twenty-five dollars is nothing to sneeze at, but it goes fast when you are paying cash for most things.
Petty crimes are common here, so we have been warned be very cautious carrying cash and when using the ATM. E.g.: only use ATMs that are indoors and unable to be seen from the street, never get into a taxi after walking away from the ATM, hide your card number and the keypad if anyone is standing nearby, etc. This is all common sense, of course, but not something to worry about at home where you roll up in the car to the drive-through ATM.
Another challenge is to have change and small bills on hand at all times. They say that about five percent of Argentine pesos in circulation are counterfeit. Allegedly, the primary generators of bad bills are taxi drivers who give it as change. To avoid this situation, we were advised to pay the exact fare and just round up to the nearest peso for a tip.
The USD has great value in Argentine. Merchants are eager to take USD, but then you have to wonder about the exchange rate at that moment.
Renting an apartment here is an interesting, expensive cultural experience. Apartment owners want USD upfront for the entire stay, plus a two-month deposit. Husband and I had carried what seemed like a ridiculous amount of cash on the plane here but it sill wasn't enough. When we finally got our hands on the necessary cash (with help from American Express), it was nerve-wracking to carry it around until we handed it over. Our realtor told a story about an apartment that he sold for $1.5 million USD. At the closing, piles of cash were stacked on a table then counted by five different people. When an armored vehicle arrive to take the cash away, the deed and title were signed to the new owners. Can you imagine this ever happening in the U.S.? The IRS would be all over it!
We had heard and read that Argentina was relatively inexpensive and that people from the U.S. could "live like kings" here. I would guess that was true three to nine years ago. So far the only bargins we have found are Argentine beef, wine, taxis, and services like babysitters, maids, and some spa treatments (services all done by women, of course -- a topic for another day). Clothing is as or more expensive than in the U.S. but of worse quality, or so I was told by some sophisticated ex-pats.
Later in our stay, we plan to explore beyond Buenos Aires and visit provinces where bargains are supposed to be still be found on leather items and antiques. Look for a future posting on shopping and sites beyond "BsAs."
Just something I found curious: a residential rubbish bin in Olivos, a nice suburb north of the city.
