Argentina seeks to boost tourism with a new exchange rate for electronic payments

The Central Bank of the Argentine Republic (BCRA) issued a press release on May 4, 2023, in which it announced a new exchange rate for tourists making electronic payments in foreign currency as of May 5.

Currently, in Argentina, there is an exchange control that has established a fixed exchange rate of around 230 Argentine pesos per dollar for electronic payments in foreign currency. However, in the informal market, known as the “blue dollar”, the exchange rate can reach 470 pesos per dollar.

The use of cards as a means of payment has increased in Argentina, but tourists often enter the country with cash and exchange it in the informal market due to the more favorable exchange rate. To increase its exchange liquidity, the BCRA announced that tourists who use cards or electronic wallets to make purchases in local businesses will have an exchange rate referred to the financial dollar, which is currently around 430 pesos per dollar.

This measure has already benefited the consumption of non-residents through debit, credit, purchase or prepaid cards issued abroad, tourist services contracted by non-residents, including those contracted through travel agencies, and transport services of non-resident passengers with destination in the country by land.

The BCRA seeks to capture more dollars to maintain balance in an unstable exchange market in the midst of a difficult economic situation in Argentina. The new measure could have a positive impact on tourism and the country in general. Foreign e-wallet operators will have to establish agreements with local administrators so that tourists can take advantage of this benefit throughout the country.

K. Tovar

Source: Cointelegraph

(Reference image source: Viacheslav Bublyk, Unsplash)

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