Argentina is known in the world for many reasons: Lionel Messi, Diego Maradona, football, tango, music, culture, its Nobel Prizes, its food, its landscapes, its warmth and its economic crises.
Argentina’s economy is not our best facet. Despite being a country rich in natural resources and with the best level of English in Latin America, terrible economic policies have triggered inflation to record levels and plunged our productivity.
In addition to the Argentines, our currency also pays the consequences of the economic disaster. The deterioration of purchasing power makes the Argentine peso worth less and less, not only as a store of value, but also as a savings currency.
Now, how and when should you use cash in Buenos Aires? Believe it or not, the Argentine peso continues to circulate and be used as a payment method. In this article, we will tell you where and why you should have cash in your wallet.
Some Considerations About the Argentine Peso
The Deterioration of the Argentine Peso
The Argentine peso has been one of the most devalued currencies in the world, reaching devaluation rates of up to 3000% over eight-year periods.
Restrictions on the purchase of foreign currencies (especially dollars) and various price controls have done little to curb rampant monetary expansion and the scourge of inflation, the flip side of which is the peso’s loss of value against hard currencies (dollar, euro).
Ultimately, the Argentine peso has lost its functions as a store of value or means of saving. Currently, the peso only retains its function as a measure of value in daily transactions, although certain sectors like real estate have shifted to being dollar-based.
In fact, until a few months ago (and even now, to a lesser extent), Argentina was a very affordable country not only for foreigners from Europe, Asia, and North America but also for neighboring countries.
The Problem with Argentine Bills
The deterioration of the Argentine peso explains why, until recently, the highest denomination bill was worth less than one US dollar. For a foreigner, needing to obtain Argentine pesos is a real challenge, as it requires carrying a large amount of cash that, in total, might not represent more than 50 dollars.
Authorities have introduced higher denomination bills in parallel with an economic policy focused on monetary contraction and curbing inflation.
Currently, the highest denomination bill is 10,000 pesos, followed by 2,000 and 1,000 pesos bills.
Coins?
In Argentina, we have almost forgotten about coins. Inflation and the erosion of purchasing power have made the metal value of coins higher than their nominal value.
Nowadays, almost no goods or services can be paid for with coins, as the highest value coin is 10 pesos (less than 0.01 dollars).
New Payment Methods
The monetary scenario described above explains why other payment methods have gained traction in the Argentine economy. While cash is still a widely used payment method in Argentina, there is an increasing use of virtual wallets, bank cards, and QR codes for paying for goods and services.
Some shops, cafes, bars, and restaurants offer discounts and benefits if paid in cash. This way, they avoid the fees of digital payment systems and tax declarations.
Cryptocurrencies
While cryptocurrencies are not yet a common payment method, many in Argentina and Buenos Aires save in this type of currency. In fact, more people are getting involved in the business of buying, selling, and investing in cryptocurrencies.
There are many applications available in Argentina for exchanging cryptocurrencies for Argentine pesos and digital dollars, so you won’t have problems in this regard.
However, you do need to check which establishments accept cryptocurrency payments for their services and goods: electronics, video games, gift cards, rentals, flights, services, accommodations, entertainment, etc.
Cash in Buenos Aires: Why and When You Might Need It
Taxis
When it comes to taxis in Buenos Aires, cash is one of the primary means of payment.
Taxis in Buenos Aires are a clear option for getting around the city. You can hail them via mobile applications or by flagging them down on the street.
In addition to the boarding fare (known as “flag lowering”), the fare increases by a fixed amount every 200 meters or 1 minute of waiting.
Many taxis still prefer cash payments once you reach your destination. Some also offer (but not always) the option to pay via QR code or debit card.
Therefore, if you want taxis to be a regular means of transportation in Buenos Aires, always ensure you have cash in your wallet.
Kiosks and Drugstores
Buying a pack of cigarettes, a drink, or any other product at a kiosk or drugstore is usually paid for in cash.
Unless you’re making a large purchase worth paying with your mobile phone, virtual wallet, or debit card, we recommend using Argentine pesos here.
Additionally, many shops offer a small discount or bonus for cash payments, as they avoid the fees associated with digital payment methods and taxes.
Tips
The main use for cash in Buenos Aires. Tips are always given in Argentine pesos, or if you prefer, in your own currency (dollars, euros), but never as a “registered” payment.
When will you give or need to give tips? Restaurants, bars, delivery, ushers in cinemas and theaters, tour guides, etc.
We recommend reserving a portion of your cash in pesos specifically for this purpose.
Remember that in restaurants and bars, the tip is 10%. For other services and contexts, the proportion can be higher or lower depending on how satisfied you are with the service or attention received.
Street Vendors and Markets
Fairs, food carts, street vendors, street performers, and more. The streets of Buenos Aires, especially in central and tourist areas, turn into open-air markets.
This is most noticeable in green spaces like Parque Centenario, Plaza Francia, and Parque Rivadavia, as well as tourist areas like Puerto Madero, Recoleta, or Palermo.
Imagine you’re walking through a market and see an artisan mate cup at an incredible price; or perhaps you want to eat an Argentine choripán or a burger at a street food stand. In these cases, cash is the most convenient payment method.
Has QR or digital technology not reached these types of shops? It has, but since most are unregistered or informal activities, vendors will likely offer you a better price if you pay in cash.
Therefore, when you’re ready to stroll through Buenos Aires, make sure you have Argentine pesos in your wallet.
Small Expenses
By small expenses, we mean amounts under 10 dollars. In these cases, both vendors and buyers find it more convenient to use cash.
Speeding up the transaction, not risking your mobile phone, and even safeguarding your debit/credit cards. These are all reasons to always carry a small amount of cash in your wallet, especially for small expenses.
