Chile and Argentina in February or March

[Scott]

Yes, no IVA as well as blue equivalent rate would be very nice!

I’m also heading there in Feb. First time.

[GillyDee]

Has anyone actually had any experience yet of how the MEP rate on foreign credit cards works in Argentina? Tripadvisor has some threads on the Argentina forum of people who didn’t get the “blue” rate they expected but as some of them think they should be able to see that rate when they put their card in an ATM, I’m not convinced they actually understand what the govt is trying to achieve with tourist spend!

I’m assuming that you pay in pesos with your foreign credit card and that either 1) the hotel, restaurant etc uses dynamic currency conversion at the time or 2) a code is passed to the issuer to indicate that it’s “tourist spend” and thus the MEP rate is applied.

I guess I’ll find out next week! I anticipated being able to use up my Paraguay guaranis when I cross to Argentina but both my guide here and my new guide reckon I should convert them in Asuncion…. Why?

[JDB]

GillyDee wrote:

Has anyone actually had any experience yet of how the MEP rate on foreign credit cards works in Argentina? Tripadvisor has some threads on the Argentina forum of people who didn’t get the “blue” rate they expected but as some of them think they should be able to see that rate when they put their card in an ATM, I’m not convinced they actually understand what the govt is trying to achieve with tourist spend!

I’m assuming that you pay in pesos with your foreign credit card and that either 1) the hotel, restaurant etc uses dynamic currency conversion at the time or 2) a code is passed to the issuer to indicate that it’s “tourist spend” and thus the MEP rate is applied.

I guess I’ll find out next week! I anticipated being able to use up my Paraguay guaranis when I cross to Argentina but both my guide here and my new guide reckon I should convert them in Asuncion…. Why?

My understanding is that although it was due to take effect on 4 November, it still hasn’t been implemented. The behind the scenes mechanism involving the purchase and sale of government bonds by the card providers/banks is very complicated and they weren’t prepared for it. There is a risk that like previous initiatives it doesn’t actually happen. I’m not sure it was ever going to apply to ATM withdrawals, which in any event are of little use since the cash machines can’t dispense sufficient cash with the largest note (1000) being worth less than £3 at the blue rate. Interestingly, the MEP is currently a fair bit higher than the blue rate.

Re your points 1 & 2 – Amex doesn’t allow DCC, but anyway it is supposed to be like any other transaction billed in pesos, but appears on your card at something close to the MEP rate rather than the official rate. I would expect that given the additional costs/complications you will not get a perfect rate, even before the FX fee. There is no code, the system is supposed to identify a foreign card from its BIN to apply the special rate c

[Scott]

There’s a thread about this on BAExpats forum which I’m watching, and as JDB says it seems that card companies are going to need more time to actually implement the new policy.

Apparently the typical monthly card spend by foreigners was 200-250m USD, which has fallen to 30m due to the size of the disparity between official and blue rate, so it would definitely be in the interests of both govt and card issuers to make the policy work.

[GillyDee]

I know the rate won’t apply to ATMs – that defeats the object – the tripadvisor contributors are under the impression however that they will be able to check when the new rate kicks in by putting their card into an ATM….

Also following the BAexpats thread.

I did actually change my remaining PYGs for ARS in Asuncion today achieving 290 to the £ – happy with that.

[JDB]

@GillyDee I’m not sure what anyone will find out from an ATM. In any event the ATM is currently fairly useless as not only does it charge the official rate but you can only probably take out max 10,000 pesos which doesn’t get you very far on a holiday. You should get 302 pesos/US$1 in BA today if you have $100 bills or 5-10 pesos less for lower value bills. Cash is useful as not only do you get almost double the rate, but many restaurants offer discounts for cash on top.

[cinereus]

1958 wrote:

I have had trips to Chile planned, but cancelled due to Covid. Now I am considering a 3-week tour in February 2024. Probably into Buenos Aires, and return from Santiago (or vice versa). Probably Club on BA.
How would you spend 3 weeks?
My thoughts are both capitals, Atacama, Wine areas, Lake District / Bariloche – but I would welcome advice, particularly from people who have been there.
I accept that we will need to take some internal flights, but I do not want to do too many of them.
– Vineyards near Santiago or near Mendoza?
– Lake District, or Patagonia, or both?
– Any coastal resorts, or “not special enough”?
– Feb / March, or November?
Thanks!

Bariloche and Patagonia are different beasts. It’s really not worth venturing into Patagonia proper if you only have 3 weeks total. Maybe if you had three weeks just for that.

The only coastal place I would visit is Valparaíso.

Absolutely avoid Calafate and the glacier there – it’s a massive tourist trap. If you want to see glaciers then Bahia de los Tempanos is far and away your best option. If not that then Glacier Grey.

Couldn’t disagree more with people saying Santiago has little to keep you there. Almost as good a dining scene as BA, incredible music and theatre scene, lots of nice underground events if you keep your finger on the pulse.

Agree with Michael C that you could spend 3 weeks in BA alone and barely scratch the surface. 3 days is a crying shame.

Mendoza is better than Santiago for vineyards but other have also made some good suggestions.

Make sure you have a dolar blue plan, WU is usually the way to go.

[GillyDee]

Just finished an exhausting bird trip around Paraguay and NW Argentina; now for some culture and shopping in Buenos Aires. For reference I transferred £1,000 to Western Union and collected it at Av, Corrientes 535 today – the office is located at the back of a photocopy/print shop, and it seems to have plenty of cash even at 17:00. Exchange rate was close to 400 pesos.

The MEP rate for foreign credit card usage has, unsurprisingly, still not been implemented. I paid for a wine tasting, James Turrell art installation and lunch at Colome which converted at 200 pesos to the £. Bit tortuous to get there but can thoroughly recommend, as others have done.

[JDB]

GillyDee wrote:

Just finished an exhausting bird trip around Paraguay and NW Argentina; now for some culture and shopping in Buenos Aires. For reference I transferred £1,000 to Western Union and collected it at Av, Corrientes 535 today – the office is located at the back of a photocopy/print shop, and it seems to have plenty of cash even at 17:00. Exchange rate was close to 400 pesos.

The MEP rate for foreign credit card usage has, unsurprisingly, still not been implemented. I paid for a wine tasting, James Turrell art installation and lunch at Colome which converted at 200 pesos to the £. Bit tortuous to get there but can thoroughly recommend, as others have done.

Sounds good. Hope you enjoyed Cafayate. Glad you made it to Colomé as well; it’s a really magical spot, extraordinary wines and strange to have that interesting museum there, but I think Hess has one at each of his wineries.