Money matters

Chilean pesos, cash and coins.

I thought I might have a quick post on money matters, issues associated with money and international travel, especially in South America. First, and most importantly, it is a cash economy while traveling, no matter what anyone tells you. And when I say cash, I mean cash in local currency, not US 'green backs'. While some places will take US dollars,  you are going to get a terrible exchange rate, which is dumb. I saw a Chinese woman buy a poster in small store at a camping site, Pehoe camping zone in Parque Nacional Torres Del Paine, with US dollars, and she paid almost $30US for a poster which should have cost her just less than $20US if she had used Chilean pesos. Exchange rates do vary, but it does help to figure things out quickly so you know how much things really cost. At first, $10,000 Chilean pesos sounds like a lot of money, but depending on the exchange rate, that is only about $15.60USD. And, exchange rates and value of different currencies vary over time, and in different countries. For example, below are exchange rates as of 24 January 2017 for exchange of Peruvian Neuvo Sol, Chilean pesos and Argentinian pesos. They are different, by orders of magnitude, and I am sure they have changed since I looked them up back in January.
1 USD = 15.9 ARS (Argentinian) and 1 ARS = 0.063 USD
1 USD = 652.99 CLP (Chilean) and 1 CLP = 0.00153 USD
1 USD = 3.28 PEN (Peruvian) and 1 PEN = 0.305 USD

To help me, I calculate value in USD of set amounts of local currency, so when a vendor tells me something is going to cost $500 ARS, I don't have a heart attack, "what? A six-pack of good beer and a bag of ice costs $500 pesos? Are you kidding, 500?" ($500 pesos is a little more than $30US, which is still a lot for some beer, but was in El Calafate, tourist town, in Argentina, where everything is more expensive). For example, I can calculate conversion of $1000 of local currency to USD to get an idea of how much things cost, really helps me keep track of what I am spending.

1000 ARS = $62.75USD, $1000 CLP = $1.56USD, and $1000 PEN = $299.16USD

In general, things are much cheaper in Peru than in either Chile or Argentina, Argentina is definitely the most expensive of all, and things cost more the further south you travel. You can expect to pay more for a liter of fuel in Punta Arenas than you would in Valdivia, Chile. 

So, learn the conversion rates, and get a great ATM card and get cash whenever you can. I got a Charles Schwab Bank debit card, and so far, has worked great, as long as I remember to notify them when I move from one country to the next. Plus, they reimburse all ATM fees no matter where you are in the world, and they have no foreign transaction fees, so it does not cost you to use it often. This can be very important in some countries, like Argentina, where I (everyone really) can only take out $1000 to $1500 Argentinian pesos at one time (and for some, this is per day), and this is only $62 to $91USD, not much in Argentina where everything costs more. And finally, what they say in the guide books is true, in places like El Chalten, Argentina, they have only two ATM machines (and my card only worked in one of them), and they often run out of money. So when traveling in western Argentina along the mountains, think of cash like fuel, get some whenever you can, keep the wallet, and tank, full, as it might be some time before you can get more cash, or diesel, and you do not want to run out of either.    

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