Using Currency Arbitrage to Travel Hack

Posted on September 3, 2013 by in Travel Deals

Argentina is one of the most beautiful countries in the world. It's got amazing people, great wine, and a rich culture that blends European and South American influences seamlessly. However, Argentina is going through some tough economic times right now. Inflation has been officially reported at an annual rate of 30% for several years and with widespread fears of an economic collapse – as in 2001 – many Argentines have been fleeing the native peso for the US dollar.

The government approved exchange rate is currently going for 5.7 Argentine Pesos to $1 at the time of this article. However, Argentines are so desperate to get their hands on dollars that there is a thriving "blue market" where the current exchange rate is 8.8 Pesos to $1. That spread of 3.1 pesos per dollar is consistent with a 54% premium over the government sanctioned exchange rate.

What this means to the intrepid traveler is a huge discount on all items purchased in Argentina and a great way to get around the country at a 50% discount.

A Primer for Taking Advantage of this Currency Arbitrage Opportunity:

-Take clean new US currency to Argentina. Keep in mind that $10,000 US is the maximum you can bring in without declaring it to customs and $100 bills are best for ease of transport as well as for the best exchange rates.

-Change your US bills at a reputable community bank (called cuevas) to get the "dollar blue" rate. Or ask your hotel for the most popular local exchange service. Avoid regular banks and/or money changers as they adhere to the unfavorable government rate.

-This is one of the few times not to use your points/miles earning credit cards in Argentina. You want to get that "Dolar Blue" rate, not the much lower government sanctioned rate. So despite all of your ingrained habits racking up miles on your credit card, in this instance use cash!

-Indulge in the fine wine, delicious cuisine and perhaps pick up a couple of famous custom made leather jackets for which Argentina is famous… all at a 50%+ discount!

In the future, I'll explain an even more effective way of using this incredible currency arbitrage opportunity to further stretch your travel dollar.

About the author: Torsten is a serial entrepreneur who started almost a dozen ventures on four continents. Torsten's love for travel has brought him to 130+ countries and travel with most of the world's airlines. You can reach Torsten at [email protected]

This post has been tagged with:
| | | | | | | | | | | | | | | | | | | | | | |

Don't miss - more topics from Mighty Travels

AAdvantage | Aegean Airlines | Aeromexico | Aeroplan | Air Canada | Air China | Air France | Air France/KLM Flying Blue | Air India | Air New Zealand | AirAsia | AirBnB | Airline Reviews | Alaska Airlines | Alaska Mileage Plan | Alitalia | American Airlines | American Express | American Express Membership Rewards | ANA | Asia Miles | Asiana Airlines | Avianca | Avios | Avis | Award Booking | Bank Bonuses | Best coffee | Best Rate Guarantee | Best Western | British Airways (BA) | Capital One | Cash Back Deals | Cathay Pacific Reviews | Chase Sapphire Reserve | Chase Ultimate Rewards | Cheap flights | Cheap Passport Photos | Cheap Visas | Checking Accounts/ Bank Bonuses | China Airlines Review | Choice Hotels | Choice Privileges | Citibank | Club Carlson / Radisson | Credit Card Deals | Currency Arbitrage | Delta Airlines | Delta Skymiles | Destinations & Inspiration | Emirates Reviews & Skywards | Error Fares / Mistake Fares | Etihad Reviews & Etihad Guest | Expedia Coupons | Fare Monitoring Service | Frequent Flyer Programs | Fuel surcharges | Getaround | Google ITA Matrix | Hainan Airlines | Hawaiian Airlines | HHonors | Hilton Honors | Hilton Hotels | Hotel Corporate Codes | Hotel Deals | Hotel Friends & Family Discounts | Hotel Loyalty Programs | Hotel Reviews | Hyatt | Iberia | IHG Rewards Club | Immigration & Airport Security | Immunization | Japan Airlines | Jetblue TrueBlue | Krisflyer | Lifemiles | Lounge Reviews | Low Cost Airlines | Lufthansa Miles and More | Malaysia Airlines | Manufactured Spend | Marriott Hotels | Mighty Travels Premium | Mileage Plus | Mistake Fares | Mountain Gorillas | Norwegian | Online Shopping Mall Deals | Orbitz Coupons & Deals | Priority Pass Lounges | Qantas | Qatar Airways | Radisson Rewards | Rapid Rewards | Ryanair | Saudia | Singapore Airlines | South African Airways | Southwest Rapid Rewards | Sri Lankan | StarHOT | StarwoodONE | ThankYou Points | Things to Do (City Guides) | TOP Travel Destinations | Travel Agent Rate | Travel Deals | Travel Insurance | Travel News | Travel Tech | Turkish Airlines Review | Uber | United Airlines | United Mileage Plus | World of Hyatt | Wyndham Hotels | Wyndham Rewards |