The CrisisPresident Mauricio Macri took office in 2015 and promised the country to get their stalled economy back moving. The previous government under Kirchner implemented a controlled exchange rate, which led to very high inflation and made Argentina one of the least free markets in the world. Macri initially lifted these controls and introduced pro-market reforms. 2015 went well, and the economy saw a spurring growth. However, 2016 saw a 40% inflation rise, which led to a rise in the poverty rate. During all this trouble, the government turned to IMF (International Monetary Fund) for a loan of USD 50 billion. This would seem normal for any other country, except that Argentina has had a troubled lending history with the IMF. In 2001-2002, the country had taken a similar huge loan from this global body during a major economic crisis, thrusting millions of people into poverty. Therefore, when Macri decided to take this loan, the Argentinians saw it as a very questionable move. Since the loan, reserves have seen a boost, but the country is still going through a shrinking economy and high unemployment rates. Their next hope could be the upcoming presidential elections in October 2019.
Now, don't you worry if you're not a finance fanatic and didn't really understand what the above explanation talked about. As a traveller, all you need to know is that the peso has crashed and it's your time to hit this gorgeous country now. You never know, maybe tourism can make their economy a little better than it is?
All you need to know1. Many hotels in Argentinian destinations like Buenos Aires and Cordoba price their rooms in dollars, and hence, it's not easy to save your pockets here. If you really want to take advantage of the crashing peso, you should ideally consider smaller, independent hotels, hostels and Airbnb options.
2. Look out for restaurants, cafes and bars that value their items in peso. Many popular steakhouses like Don Julio, the best in the world, and wine shops are included in this, offering their goods and services at almost half the price as it used to be. Avoid the big, international restaurants, and instead, try out some cute and lazy cafes on street corners. You will end up saving much more than you could've imagined. Major tip - these cafes have free wi-fi.
3. Taxis, bus rides, local guides and attraction admissions are incredibly affordable, so go all out in making use of these services.
4. While most flights from across the world to Argentina are priced in dollars, these prices are not known to drop as much. However, the local flights within the country are way cheaper than expected. A flight from Buenos Aires to Cordoba would cost you approximately USD 15.
5. Although the currency crash is exciting for a traveller, make sure to do proper research about the country's state before planning your visit. Many times protests break out on the streets and there's turbulence among the locals. Tourists are known to remain unaffected during these times; however, it's always better to research beforehand.
So what are you waiting for? The land of Tango is welcoming you with open arms, and this is your best time to visit! Book your flights and head out to explore Argentina because what better news than a budget trip!