Travel Reference
In-Depth Information
new peso. Additionally, the Argentine peso was
pegged to the dollar and, because of that, rates
have remained constant ever since.
Did You Know?
In 1999, there was even discussion of
adopting the dollar as an official cur-
rency.
Hence, the exchange rate of the new peso has
been holding steady at $1 US to one new peso.
However, economic and political thinking
changes over time. Just as you should when-
ever you travel, check the rate immediately
prior to your departure.
It may help for you to be aware of the events
leading up to the introduction of the new peso.
In the 1970s, Buenos Aires was one of Latin
America's best buys for the dollar, a budget
traveler's dream. A steak dinner at a lovely res-
taurant could run all of three dollars. With the
advent of the “parallel market” in 1974, there
was enormous variation between the parallel
and the official rate, so costs depended largely
on where you purchased your pesos.
Inflation soared out of sight in 1980. A cup of
coffee, for example, cost $5 and a cab to the air-
port from Buenos Aires was over $50. In 1985
the austral replaced the peso as the unit of cur-
rency at approximate par with the dollar. Infla-
tion continued to soar and so did the strength of
the dollar. Upon his election in 1989, Argen-
tina's president, the Peronist Carlos Menem
