South America Travel Money Tips

Money exchange during a South America vacation should not prove difficult for a traveler. The rule of thumb when traveling wherever is to have a mix of credit cards, cash and traveler’s checks, thus ensuring safety and convenience.

Cash

Exchanging money in Latin America does not have to be troublesome process so long as you keep a few things in mind. Travelers heading south of the equator for a South American Vacation should take note that the most widely accepted foreign currency in this region is the US dollar. Goods and services can often be directly paid for using the dollar, with change being returned in dollars or local currency. However, depending on the country and service or provider, the exchange rate for your transaction may vary. Before you leave for your Latin America Vacation, find out the exchange rate for the country or country’s you will be visiting.

Major currencies such as the Euro, Sterling or Canadian dollar should be easily exchangeable at airports and in banks. The exchange rate for these currencies will be significantly lower that what you would receive for the dollar, but the rate should still be favorable.

If you are heading to the home of the famed Machu Picchu ruins for a Peru Vacation, remember that all hotels, tourist-friendly restaurants and major supermarkets will gladly accept US dollars. Ask to receive your change in dollars or in local currency, the nuevo sol. Despite refusing $100 bills, supermarkets are usually the ideal venue to exchange your dollars – their exchange rate is usually the best you will find.

Outside banks, supermarkets and large shopping centers in capital city Lima’s more bustling districts, travelers should be able to locate cambistas. Though these cambistas are appropriately licensed, practice caution by keeping your cash out of sight and always checking your bills and coins.

If traveling outside busier urban centers where the dollar is less accepted, visitors should arrive at their new destination with a steady supply of soles. Change your dollars before you leave Lima. However, keep a watchful eye for counterfeit bills and coins. A large number are in circulation, therefore it is wise to carefully check for fake soles, especially larger notes. Bills should feature a silver strip, clear watermark and marked detail at the top. False coins usually have a recent date printed, with the surface-copper sometimes scratched off. When in doubt, simply ask for another bill or coin.

Heading to Buenos Aires for an Argentina Vacation? The national currency - the peso - is easily exchanged for American dollars and Euros. They are readily accepted at popular restaurants, hotels and supermarkets in key cities like Mendoza or Bariloche. Argentina also has cambistas (money changers) who will exchange your dollars at a favorable rate, but just as in Peru, take caution of handling your money on the street. Banks and airports in Argentina provide a safe and convenient alternative to dollar exchange; however their rate will be expectedly less competitive than what you will find elsewhere.

Changing money in the less modern sectors of Argentina will prove a bit more difficult. Therefore make sure you carry with you an adequate amount of pesos.

Whether visiting Rio de Janeiro or Sao Paulo during your Brazil vacation, exchanging your dollars for local reais should be straightforward at all banks and tourist -frequented hotels. Unlike the cambistas in Peru and Argentina, it is not recommended to utilize street changers in Brazil as they are notorious for exchanging false bills. Banks are located throughout all major metropolises in Brazil. However, keep in mind business hours as banks are typically closed on Saturdays, as well as Sundays. Make sure your have a sufficient amount of reais for the up-coming weekend.

An exception to the dollar standard is up-and-coming Central America hot spot destination, Costa Rica. Unfortunately - with the exclusion of tourist-oriented services such as tours and hotel fees - the US dollar is not frequently accepted. Dollars, along with the Euro, can be easily exchanged at banks with your passport. Other major currencies might not be in circulation. Just as in Brazil, it is not recommended to exchange with street changers because of numerous counterfeit bills in circulation. During your Costa Rica Vacation, change your dollars for colones at banks and major hotels, but only accept perfect bills as tattered notes will probably be rejected during another transaction.

ATM machines are easily located all over Latin American capitals and urban centers. These cajeros automaticos are linked to the Cirrus, Visa Plus and Link ATM networks and upon your choosing, can dispense dollars or the regional currency. If your bank charges a low fee for cash withdrawal, using an ATM could be the best cost-efficient manner to travel the region. Nonetheless, always take appropriate safety measures when using an ATM such as avoiding them after nightfall if alone.

Traveler’s Checks

The safest way to travel with money in Latin America is by using a Traveler’s Check. However, exchanging these checks for local currency is not as easy as it is with the dollar or Euro. Make sure your checks are issued in US dollars, as they are most easily exchanged. Also, banks at all major capital cities across the continent should be able to exchange your traveler’s check without a problem.

Cashing a traveler’s check varies in each country as different commission rates are applied. For example, in Brazil, your check might cost your $20, whereas the rate in Costa Rica banks is fixed at 1-3%. Exchanging your traveler check busier cities such as Lima and Buenos Aires might require a longer than average wait on line at the bank. Keep in mind that changing your Traveler’s Check in more remote locations such as the Peru Amazon should prove a lot more complicated.

Should you lose your check or if it is stolen, it is important to obtain a police report to hold up your claim.

Plastic

Major credit cards and debit cards are frequently accepted across all of South America. The Visa network is most widely accepted. MasterCard, American Express and Diners follow.

Depending on your bank’s fees for an international transaction, it might be wiser to withdraw cash from a local ATM rather than using your card to pay for souvenirs, meals, etc. The exchange rate you will receive for the dollar is more often than not better than what your card may offer.

Many establishments such as some restaurants, hotels and independent tour businesses will charge a large credit card fee – sometimes up to 10%! Confirm the final price of your purchase before signing away on the dotted line.

About the Author

This Central and South America travel guide was written by a travel-loving South America vacation expert at Latin America For Less, a member of the Latin America For Less family.