Argentina to let tourists use credit and debit cards at bargain exchange rate
In a move aimed at raking in tourism dollars, tamping down the informal exchange market and boosting Central Bank reserves, the government has announced it will offer visiting travelers a more lucrative exchange rate on card purchases.
Under the new rules, which kicked in yesterday, foreign tourists who do not reside in Argentina and use non-Argentine issued credit and debit cards will be able to access an exchange rate similar to the ‘MEP dollar’ (Electronic Payments Market), which midweek stood at around 292 pesos per dollar – much higher than the official rate of 158 pesos.
For example, if a tourist pays 10,000 pesos for a dinner, at the official exchange rate of 155 pesos their cards would normally be billed for US$64.30.
With this new measure they will still pay 10,000 pesos for the dinner - but be charged US$34.24 (at a theoretical MEP exchange rate of 292 pesos) on their credit card statement.
According to official estimates, of the roughly US$200 million to US$250 million entering the country monthly via foreign tourism, only US$30 million comes through the formal sector.
At: https://www.batimes.com.ar/news/economy/argentinas-government-tries-to-tempt-tourists-in-search-for-dollars.phtml
Tourists riding a Buenos Aires sightseeing bus.
Amid a steady recovery in foreign tourist arrivals over the past year, the ready availability of a black-market "blue" exchange rate - often at half the official rate or less - has diverted an estimated US$2 billion in tourist hard currency from central bank coffers.
As of Thursday, foreign visitors will be allowed to take advantage of the bargain unofficial rate on all card purchases - a savings of some 45%.
While the economy has been recovering, a foreign debt crisis inherited in 2019 from the right-wing Mauricio Macri administration was aggravated this year by massive hikes in oil and natural gas import prices.
