What Currency Is Used in Argentina?

What currency is used in Argentina?

If you're planning a trip to Buenos Aires, importing goods from Argentina, or managing cross-border payments, it's essential to understand the country’s currency system. This guide is written for travellers, international businesses, investors, and anyone handling money involving Argentina. We’ll explain what currency is used, how it works, and how to manage it effectively—especially in light of Argentina’s complex financial environment.

Argentina’s official currency: the Argentine Peso (ARS)

The official currency of Argentina is the Argentine Peso, abbreviated as ARS and commonly symbolised as $ or AR$ to distinguish it from other dollar-based currencies.

• Currency name: Argentine Peso

• Currency code: ARS

• Symbol: $ or AR$

• Subunit: 1 peso = 100 centavos

The Central Bank of Argentina (Banco Central de la República Argentina) is responsible for issuing and managing the currency and monetary policy.

Coins and banknotes in circulation

• Coins: 1, 2, 5, and 10 pesos

• Banknotes: $10, $20, $50, $100, $200, $500, and $1,000

Banknotes feature historical figures, national animals, and cultural landmarks. Due to inflation, the $1,000 note is the most commonly used high denomination, and smaller coins may have limited practical use.

Where the peso is used

The Argentine peso is the only legal tender in Argentina and is used throughout the country—for shopping, salaries, property transactions, and public services.

While pesos are required for most purchases, foreign currencies such as the US dollar and euro are widely used informally, especially in real estate, tourism, and luxury markets. Many prices may be quoted in US dollars, even though the final payment must be made in pesos at the official or agreed exchange rate.

How the Argentine peso works

Argentina operates a multi-rate exchange system, including:

• Official exchange rate (used for most government-related transactions)

• MEP (Bolsa) and CCL (Contado con Liquidación) rates (used in financial markets)

• Blue dollar rate (an informal market rate widely used by tourists and locals alike)

As of 2024, the official rate may differ significantly from the parallel or "blue dollar" rate, sometimes by more than 100%. This dual exchange system reflects efforts to control inflation and capital flight, but also creates challenges for businesses and visitors.

Benefits and considerations of using ARS

Advantages:

• Required for local spending: All domestic purchases must be made in pesos.

• Flexible pricing in some sectors: Locals and tourists often negotiate pricing in USD or ARS based on market conditions.

• Cash-heavy economy: Widely accepted even in rural and remote areas.

Considerations:

• High inflation: The value of the peso can decline rapidly, affecting savings and pricing.

• Currency restrictions: The government tightly controls foreign exchange and limits dollar purchases.

• Multiple exchange rates: Choosing the right one can impact the real value of transactions.

Common misconceptions

One common myth is that US dollars are accepted for daily purchases in Argentina. While dollars are often quoted in contracts or used in high-value transactions, retail shops, restaurants, and transport services only accept pesos.

Another misconception is that you can use cards at the blue dollar rate. In most cases, foreign cards are processed at the official rate or a tourist-enhanced rate, which is still often worse than exchanging cash at the informal rate.

Tips for managing money in Argentina

• Bring US dollars or euros in cash, and exchange them at reputable cuevas (informal money changers) to get the blue dollar rate.

• Avoid relying solely on card payments, as they may be charged at the official rate.

• Use local ATMs cautiously—withdrawals are limited, fees are high, and rates may be unfavourable.

• Monitor exchange rates daily, especially during periods of political or economic uncertainty.

• Negotiate in USD but pay in ARS, using the most favourable exchange rate when possible.

FAQs

Can I use US dollars in Argentina?
Not officially. While some businesses may quote prices in USD, pesos are required for all in-person payments.

Is the peso stable?
No. The Argentine peso has experienced high inflation and regular devaluations. It is important to monitor exchange rates closely.

Are cards accepted?
Yes, in cities and large establishments. However, foreign cards often process transactions at a less favourable rate compared to exchanging cash at the blue dollar rate.

What’s the blue dollar?
It refers to the informal cash exchange rate for USD to ARS, often far better than the official rate. Widely used by tourists and locals, though unofficial.

Real-life example

A traveller from Germany brings €1,000 to Buenos Aires. At the official rate, this would convert to approximately AR$350,000. However, by exchanging at the blue dollar rate, they receive closer to AR$700,000—double the value in pesos. They use pesos for all in-country purchases and avoid card transactions, managing to stretch their budget much further by understanding the dual exchange system.