Starting tomorrow, the project proposed by the new Minister of Economy, Martín Guzman, will be brought to Congress which could lead to it becoming effective starting this Friday, December 20th, 2019. This economic plan, officially titled“The Law of Social Solidarity and Productive Reactivation” will impose a 30% tax on both the purchase of US Dollars, and for all purchases made using USD. Several other measures will be included in the bill that can you can read about here:

The initiative is expected to last for 5 years. Additionally, capital controls imposed by the previous government will remain in place, restricting the purchase of USD to $200 per person, per month.

Citizens in Argentina looking to purchase USD for the purpose of saving will need to review five exchange range rates to ensure they’re getting a good deal. We’ve compiled a list of these exchange rates below:

Wholesale Dollar

Exchange Rate: $60 Pesos per $1 USD

This exchange corresponds to the official dollar price that the Central Bank charges retail banks. Only large investors can access through a bank table. It is used for operations between banks, companies and foreign trade.

Official Retail Dollar

Exchange Rate: $64 Pesos per $1 USD

This exchange rate can be found at bank branches or through exchange agencies. Access to this dollar is limited to $200 USD per month, per person.

Tourist/Savings Dollar (New official Retail Rate)

Exchange Rate: $82 Pesos per $1 USD

If the Law on Social Welfare and Productive Reactivation that the Government sent to Congress is approved, a 30% tax will be placed on the purchase of the official retail dollar, making it $82 Pesos for every $1 USD. This tax will also include all purchases made with dollars including: plane tickets, hotel reservations, Netflix, etc. This is equivalent to a ~23% devaluation of the Argentine Peso.

The “Free” Dollar

Exchange Rate: $76 Pesos per $1 USD

This is the informal rate often found outside legal channels. Therefore, it is not quoted in any specific market and its value is a rough estimate. This rate is offered by so-called “cuevas” on of the street. It is also typically agreed upon by family members, friends, or individual tourists who need to exchange currency outside official channels.

The recent 30% tax — which is projected for foreign dollar consumption and for the purchase of foreign exchange for treasury — revived this market and widened its gap with the retailer.

MEP Dollar / Stock Bag

Exchange Rate: $71 Pesos per $1 USD

The “Electronic Payment Market” (MEP in Argentina) is a way to purchase dollars through the sovereign bond market (which are quoted in both pesos and dollars). For this operation, the more liquid bonds are utilized which include ‘AO20D’, ‘AY24D’, and ‘DICYD’. It is required to have a client account in a stock exchange and a savings bank in USD. As it is a “blank” operation, the origin of the funds must be duly declared.

You may be asking yourself how this process actually works. In short, the money in Pesos is transferred to the stock exchange, sovereign bonds that are quoted in Pesos and USD are purchased (there are different settlement periods from immediate cash up to 72 hours), then they are held for a mandatory term in the client account and until sold.

CCL or Dollar Counted with Settlement

Exchange Rate: $73 Pesos per $1 USD

This method is often used to move foreign currency out of Argentina. It is carried out through a bond or also through an action listed abroad through ADRs (American Depository Receipts) that are bought in Pesos or USD in Argentina and sold abroad. As you need to have an account abroad, it is not something used by most Argentine’s looking to save money. You often see these types of transactions being made by professional investors or companies.