This is a 100 Argentinian pesos bill.
Until a few years ago this was enough to buy a full McDonald's menu.
Today yo can buy 2 subway tickets.
This is the biggest bill in Argentina, 1000 pesos.
Nowadays worths a little less than 2 dollars.
Today we'll talk about the confusing subject of money in Argentina.
"Argentina is getting more and more expensive with inflation that arrives with 71% and threatens to reach
90% by the end of the year. (Music) Inflation in Argentina Hi friends! how are you doing?
That's right, you've seen the tittle, we are back in Argentina.
A beautiful country with amazing places, delicious food, kind people who always receive me so well here and for that I am very thankful.
And wow! I must say that since my last visit to Argentina, about four years ago, I have come to meet a country that in several aspects is very different, especially in the economic field.
I don't have to give a lot of context.
We have heard a lot in the news about the
devaluation, about the inflation.
Since a few years from now in this territory, this issue is a bit out of control and really with what I've experienced in the days I've been here, this is more than evident.
I want to put you in a little context:
The first time I visited this beautiful territory was in 2016, 7 years ago from the day I recorded this video.
With this little bill here of 20 pesos, I could buy maybe an Empanada, an Alfajor,
a subway ticket...
It was good, it was useful to have it in your pocket.
Nowadays to just get into the subway you would need two of these.
And what this bill could buy me has practically being replaced by this one: 1000 Argentinean pesos, the biggest bill of the country's currency.
In 2016 the dollar was something like 16 pesos, today, 7 years later, it costs about 400 pesos, in fact, just today 423 Argentine pesos.
Depending on the exchange rate. Because there's s the official exchange rate,
the tourist exchange rate, the Blue exchange rate, which is more informal, we'll talk about it, it is a very confusing subject for foreigners, and for the locals too!
You have to keep checking it every day because it goes up and down with very little control.
Just wandering through everyday life, is enough to notice that this country is gradually heading towards dollarization.
It is the most common to view ads of apartments apartments for rent, payment is accepted only in dollars.
In the restaurants you already get to offer like
"would you like to pay better in dollars?" because people know that the Argentine pesos they
charge today, tomorrow it could be worth a lot less.
So that's what I want to talk you about.
I want us to go visit some daily daily.
I want us to go to certain exchange houses, so we can try to understand how currency works against the dollar today.
I repeat, it turns out to be something quite confusing.
I want to emphasize that I do this in the most respectful way possible towards this country that I love
It is something that's happening, it's not a secret, people talk about it on the streets in an all-too-everyday way.
Well, come with me to see if we can simplify this subject which is too complex. Let's hit it!
Lets talk about the different exchange rates.
We have the official exchange rate, which if
you Google it you'll see it.
Today that I'm recording this, the dollar is about 200 Argentinean pesos.
But that's not the one that's actually used by the people, they use a lot the blue dollar exchange rate,
That this is really what happens in Argentina since ever.
Although the difference has never been so abrupt.
We are talking about that the official exchange rate is 200 pesos and the Blue more than 400 pesos, that's double!
In addition to that, we have other exchange rate.
Exists for example, the tourist dollar,
the targetta dollar, we have the wholesale dollar, the mep dollar, ccp dollar.
Even came to exist, curious one, the Qatar dollar, which was a tax designed especially for people who were going to the World Cup in Qatar.
Ss there was a lot of money leak to change dollars when traveling abroad, they said we're going to put 35% into them, and some locals told me that this tax was already left by law.
The street that I'm on right now is Florida, which is very well known for the exchange houses and the Cuevas, which are the exchange centers, that are not 100% authorized. You see a lot of people shouting "dollar exchange!, dollar blue, what do you want to change?"... These people are colloquially known as "arbolitos" (little trees).
I imagine because they are there standing, because they have a lot of green on them.
So the "arbolito" takes you to the cave.
Let's see if I can record a transaction to
show you more or less how it works. This behind my back is an official exchange house.
I want to see how much they change my dollar.
Then let's go to one of these Cuevas and compare
-Hey and how much they handle the official one here? [Man talking] $370... That's good for the benefit of the tourist.
Okay, perfect thank you. It was quite late, for 50 dollars I got 18,500 Argentinean pesos,
and they gave me a fee that was quite confusing.
It was interesting, a fee they call "the tourist one".
In fact they give you a little sheet, the official so that you have your rate there So he was explaining to me that the official exchange rate,
very kind by the way, that the official rate for locals in this exchange house was at
200,
okay 200 Argentine pesos per dollar,
but for me as a tourist, with my foreigner passport, I could change it to 370, a little bit less than the double.
And this is the rate to favor the foreigner, the tourist.
The same way, caught my attention the fact that there were many signs saying "we do not give counterfeit bills"
cause according to what I was told it is a problem that is emerging a lot.
More and more counterfeit bills are given, although there are others who believe that this is to affect the Cuevas.
Is like a campaign to say that the exchange houses give real money.
In the Cuevas, well, who knows!
In a certain way, well, I guess it is true.
We are going to exchange now
in a Cueva, with one of the Arbolito. Walking through an exchange "Cueva" It was a curious experience.
With one of these people who screams in the street. I approached him, I asked him and they put you in, literally like Cuevas (caves),
that's why they called them Cuevas, because even though it's like an open secret, they take you, for example, they took me into a building, to a small hallway over there,
and you go into an area that it was forbidden to take your phone out.
It's like very "Under" situation.
For $50 they gave me $21.400 I exchanged $100 they gave me $42,800. And the receipt that they give you is very informal, it's just like this. For this one they don't ask you any identification.
They don't even ask you for your passport or to sign anything like.
Unlike the exchange house, there you have to give your passport, you will have to sign a little piece of paper and the whole situation, including
giving your address.
Here, well, it is what it is, the informal exchange, and this is the one that is called the Blue exchange.
Well, I got about 4,000 Argentinean pesos more, than the Blue exchange rate would be about 10 dollars.
We are talking about a 20% difference upwards if you exchange it informally.
Although, be careful with the risk that you could be given some counterfeit bills.
Hopefully these don't, they look legitimate enough Now let's talk a little bit about the housing costs.
As a foreign, tourist that does not analyze things too much, you could say:
"Wow everything is very cheap, what a benefit", but if we look a little bit more in detail it's really not a good thing that everything is so cheap.
I'm going to to give you a couple of examples:
yesterday we went to eat at a pretty normal place, let's call it a pizza shop.
We were five people, we ordered everything, a meal entree, a main dish, even beers...
the bill for the five of us food was a little more than 40 dollars, 8 dollars per person to eat
enough, sufficient way.
Then at dinner, we went to a more luxurious place.
A steak place, a few desserts, I ordered my Fernet with coke, my beer.
My colleagues ordered a complete dinner.
Same way, for 5 people we paid a little less than 100 dollars.
Then you get to thinking, at what point it's affordable for a business, to be able to pay all the workers, from waiters to chefs, to receptionists... for an account like this.
I repeat for a tourist who comes just to visit, can say "Wow, it's cheap to visit here"
But if we think about it a little more in detail, it is really not a good thing.
Oh, another little thing I have seen happens in the restaurant theme, some places offer discounts on the total bill for paying with cash,
instead of card pay or bank transfer, this obviously because it involves less commissions, less statements, but yes, on one site we were even offered up to 20% discount for paying with cash, instead of bank card. Now, in rental prices, to rent an apartment, a house.
I was looking on the internet and I found houses that,
for example, in a normal colony, a two room apartment, 35 square meters,
90 thousand Argentine pesos, that is about 200 dollars.
Likewise, from the outside you
might say, okay it's acceptable,
but we have to consider that a standard salary, let's call it an average salary, today is between 80,000 and 120,000 Argentine pesos, this in a so-called office job.
If you work in an industry that requires, for example, a bachelor's degree, you could be earning a little bit more than $100.
But just for us to analyze, if you are earning 1$20 and $90 is a two room rent...
Well sometimes you have to get more than one job.
Now, if we go to the rents, in locations a little bit more Chetos, how they call it here, like Palermo, etc, you find yourself with apartments that are even from the advertisement, you get it in dollars.
For example this one here, 45 m², two rooms, 1100 dollars.
This because it is in the Palermo Hollywood area, which is like a high zone, a rich zone.
So yes, These areas will always handle it in dollars.
And the way a lot of people are looking at things, is possibly where it's heading. And related to the issue of jobs and salaries, you have to get very smart when it comes to signing contracts,
because, let's suppose that a company is offering you a salary of 100,000 pesos, and they tell you "we are going to sign you for two years".
-Oh, good, I'll have a job for two years!
Butt... you don't know if this 100,000 pesos they're paying you today, will be worth the same in one or two years. So you have to get really smart and maybe ask for a contract signature in dollars or renewing and changing it periodically.
So, what do people talk about on the streets? Today many people are talking about the possibility of taking out some zeros.
Famous technique that many, many countries have applied over the decades.
Another possibility that has been talked about, is the definitive dollarization.
At least informally on part of the people.
This is something that I have seen happen in several countries in similar situations.
And this, according to what I have personally observed, usually makes sites quite expensive.
Let's take a simple example, and please don't take this to heart, but I have visited the sister territory of Venezuela. A few years ago, visiting Venezuela, as a tourist,was very cheap,
and nowadays, with the dollarization, wow! I tell you from my own experience, it is expensive.
And I have observed the same thing in Asian countries, in African territories...
that are opting for informal dollarization.
The life costs, costs in genera tend to rise markedly.
Then that's where it's heading.
From the little bit that I've observed here, I'd say it's a strong possibility. But the truth is, who am I to give an opinion?
not a specialist or anything.
I'm just telling you what people usually say Well there you have it!
A little bit of what I've observed regarding the confusing issue of the currency in Argentina.
Which I repeat, is very changeable, is very
complicated to understand.
Yesterday it was at 410, today it is at 42-something, tomorrow it will probably be at 430something and so everyday.
Now, yes I do want to add to all of this
that first and foremost I've met some super cheerful people in the street,
Everything feels very alive and it's a lot of joy, and we can only leave our best wishes in this beautiful country, with so many beautiful gastronomic and all kinds of natural beauty has given to the whole planet.
Thank you so much for joining me, and as always,
see you in a few days, with a new video. Goodbye
