How does the "official" exchange rate work?
The gov says the peso is worth way more than it really is, so can't you exploit that to get really cheap dollars?
Do they only allow "one way" official exchanges, from dollars to pesos?
The gov says the peso is worth way more than it really is, so can't you exploit that to get really cheap dollars?
Do they only allow "one way" official exchanges, from dollars to pesos?
Of course, there will be other places that will give you rates that are closer to that the actual market value is. They may be disguised as place selling collectable coins or whatever.
At some stores, they may give you a much higher rate if you buy their stuff with foreign cash. USD and BRL are generally accepted.
Then there are the 'arbolitos'. They will be the guys shouting 'cambio!' at tourist locations. YMMV with them. Some are legitimate, some may insert some counterfeit currency in the mix. Personally, I never felt comfortable following someone to an unknown location when they know I have cash in my person.
1. fixed (or managed) exchange rates
2. independent monetary policy
3. free flow of capital
Most countries pick 2, 3, not 1, and thus have floating exchange rates.
Countries within the Euro area, Hong Kong pick 1, 3, not 2, and thus have limited influence on monetary policy.
China, Argentina pick 1, 2, not 3, and thus impose capital controls.
The unofficial rate that outworlder mentioned is the dólar azul (blue dollar). As FabHK and jtsummers said, Argentina imposes capital controls, so you can't buy too many US dollars at the (artificially strong) official rate.
The capital controls mean that an Argentinean that buys something from or while abroad must purchase US dollars at the blue dollar rate. Blue dollar is unofficial but so widespread that websites track it.
Russia is an interesting contrast to Argentina. The gap between the official and unofficial exchange rates between ruble and US dollar is much smaller than between the Argentinean peso and US dollar. This is because right now it is almost impossible for a Russian to travel or purchase things from abroad, which depresses the demand for dollars. Argentineans are free to travel and purchase things from abroad, so the demand for US dollars is much stronger.
Confusing the issue is that the same "dólar turista" term is also being used to describe a new exemption from the foreign exchange restrictions that allows banks to purchase dollars from non-Argentine tourists visiting Argentina at the "dólar MEP" rate, which is actually currently higher than the black-market rate, at AR$323. Up to US$5000 per tourist per month.
Also, as a non-Argentinean, I have to confess that I hadn't considered the impact of an artificially strong dólar oficial on the country's exports. Surely beef and other Argentinean exports aren't priced at the official exchange rate on world markets? But I don't see how they couldn't be, either.
Yes, Argentine exports (mostly direct farm products like soy and corn now rather than beef) are made artificially more expensive by the perverse dollar policy. Also, on top of the 59% haircut from the fraudulent exchange rate, there's a 33% "retención" applied to agricultural products, so the farmers only get 21% of the international price of the exported grain. The fraudulent exchange rate also subsidizes (legal) imports, making it impossible for most Argentine industry to compete even in the domestic market with overseas imports.