Three years ago, at the start of the Pandemic, we were quarantined in Mendoza, a city located in western Argentina. We were not allowed to explore the city, the vineyards, or the nearby Andes mountains. After two months, the U.S. Embassy arranged transportation from Mendoza to Buenos Aires (16 hours across the country) and a 9-hour flight from Buenos Aires to Miami. The trip back home temporarily ended our traveling adventures in South America. But we vowed that someday we would return. At the time we did not know that it would take three years.

Even though we have traveled during the last three years, we really wanted to return to Argentina and see the country where we missed so much.

First, I have to explain a little bit about the economy because it has made paying for things a bit of a challenge. We’ve spent a lot of time trying to figure out our costs.

Argentina Economy

Argentina has a chaotic political history with a succession of military takeovers, corruption, and free-for-all privatization in the 80s and 90s that wreaked havoc on the economy. In the last four years inflation has climbed from 45% to over 140%.

This high inflation rate has made the country attractive for tourists but has created high unemployment, high cost of living, and uncertainty for Argentinians.

Dollar Exchange Rate

The official exchange rate is $360 Argentine pesos to the dollar and is highly restricted. Individuals can exchange pesos for no more than $200 dollars a month at the official rate and pay taxes adding 80 percent to the cost.

The most commonly accessed rate among Argentinians, the “blue dollar,” is a free-floating, all-cash exchange rate you can get in back-rooms of stores, newspaper stands, ‘Cambio’ Kiosks or in the street — or a contact willing to exchange dollars for pesos. This unofficial blue dollar exchange has been in use for many years but it has exploded in the last two years. The current rate is about $959 pesos to the dollar, and it fluctuates daily. That is about three times more than the official rate. The dollar is in high demand and Argentinians exchange pesos to dollars because it is a stable currency for savings and retirement. Tourists love the blue dollar exchange because it increases their purchasing power. During the last two years, tourists seeking the blue rate have been encouraged to go to the back rooms of exchange offices or Cambios to exchange dollars into pesos at the higher unofficial blue rate. If a tourist does not have dollars to exchange, Western Union uses the blue dollar rate when giving cash advances in pesos from U.S. credit cards or withdrawals from bank accounts.

When we were in Mendoza, Argentina back in the spring of 2020, the blue dollar rate was around 85 pesos to the dollar. At the same time, the official exchange was at a similar rate of around 70 pesos to the dollar.

The government changed its policy in 2023 on purchases paid for with a foreign Visa or Mastercard and cash withdrawals from ATMs. This new rate (MEP Rate) is slightly lower than the unofficial blue dollar rate. For example, when the blue dollar rate was 959, this new MEP exchange was a similar rate of 907. For us, the convenience of using an ATM to get pesos rather than bringing a stack of dollars to exchange or going to Western Union to wire money from our bank account was worth a slightly smaller exchange rate of 5 cents/dollar.

Confusion 

The exchange rate has been very confusing for us and several times we didn’t know if our hotel room would be $120/night or $60/night. We were quoted the higher rate by the hotel but when the credit card charges actually went through, we found that we were charged the lower rate by Visa. However, it wasn’t always clear whether the hotel would charge the higher rate. We spent more time than we expected trying to figure out what a hotel or a tour would cost. Some places posted their rates in dollars and others in pesos. And even if we expected to be charged in pesos, sometimes the hotel wanted to be paid in dollars due to the rapidly changing exchange rate. Fortunately, we paid for most meals, hotels, and tours with our credit card and withdrew pesos from ATMs for tips and small purchases and received a good exchange rate.

There are a total of twenty-five different exchange rates but the only two we cared about were the blue dollar and MEP. Both rates are very favorable for foreign tourists making the country an affordable place to travel. But we didn’t lose sight of the fact that the situation is not good for Argentinians living with a 140% inflation rate.

Buenos Aires

Once we figured out how to pay for things, we were able to focus on the city of Buenos Aires, often hailed as the “Paris of South America.” It is full of culture and spirit and has a rich history. It is located along the southeastern coast of South America (a nine-hour flight from Miami) and brings together a European feel and Latin American charm.

Each of the city’s neighborhoods has a distinctive character. Palermo is trendy with expensive boutiques, upscale restaurants, and huge green parks. La Boca’s buildings and homes are painted in vibrant colors and couples dance the tango for tourists on Caminito Street. Recoleta is old and elegant with aristocratic mansions and is where the famous Recoleta Cemetery is located. Tourists come here to see where Eva Peron is buried.

The Tango

In our travels over the years, we have observed many cultural dances; the jarabe tapatío (mexican hat dance) in Mexico, the samba in Brazil, the salsa in Columbia, the pasillo in Ecuador, the marinera in Peru, and the flamenco in Spain. Now we can add tango to the list.

Brief History

The tango emerged in the late 19th century along the Rio de la Plata, the river that divides Argentina and Uruguay, in the port neighborhoods of Buenos Aires and Montevideo.

The dance evolved from a fusion of African candombe rhythms, European ballroom dances like the waltz and polka, and the habanera, a Cuban dance.

Initially, the tango was a dance associated with the lower classes, including sailors, immigrants, and sex workers. It was performed in the poor areas of the cities, in brothels, and on the streets. The upper classes considered the dance scandalous because the dancers moved sensually and held each other tightly.

At the beginning of the 20th century, the tango gained acceptance. It transformed into a refined and structured dance and orchestras began to play tango music.

In the 1920s, the tango became popular in Europe and the United States. The golden age of tango was the 1940s and 1950s and incorporated new musical elements and styles. The steps became more standardized and over time, and diversified into Argentine tango, ballroom tango, and nuevo tango, each with its own characteristics. In 2009 UNESCO designated the tango as culturally significant and an Intangible Cultural Heritage.

The Tango Today

We saw tango dancing in parks and restaurants. There are also tango performances at milongas (dance halls for amateur dancers) and theaters and dinner theaters.

One night we saw a tango show. Our 3-course steak dinner (which was very good) began at 8:30 and the performance began at 10:30. Argentinians typically eat dinner at 9 and evening activities start at 10. The 4-piece band included a piano, a string bass, a bandoneon (type of accordion), and a violin. There were five pairs of dancers, two singers and multiple costume changes.

The show covered the history of tango from its ballroom dancing origins in the late 1800’s through today which features passion, intricate footwork, and dramatic expressions of emotion.

Milongas

The tango dancers who perform in the streets, in restaurants and bars, and at theaters are usually professionals performing choreographed dances. Locals dance at milongas, ballrooms where people gather to eat, drink and dance.

A guide told us that going to a milonga is not for the timid or shy. The locals expect that you will dance with many partners throughout the night. So Milongas were a bit too intimidating for us. These dance halls are scattered throughout the city. Some offer tango classes before the dancing starts. Most of the milongas open after 10 and people dance until 4 a.m.

We are loving our time exploring Argentina and Buenos Aires. The food is fantastic including great pastries, Italian pasta, steaks, wine, and the best empanadas (more about that in another blog post). The architecture is beautiful, and there is a coffee shop, flower stand, fresh pasta store, and bookstore every few blocks. Finally, Buenos Aires is a relaxed city that likes to stay out late and sleep in. The people seem to thrive on slowing down and enjoying life. Who can argue with that?