The Blue Dollar

April 7, 2026 Ekmsid, Argentinian pesos.

By Becca Dugan

May, 25 2015

Argentine people, specifically porteños (those from Buenos Aires) are notoriously rule-avoiders. One very interesting and prevalent example of this is the Dollar Blue, or Parallel Dollar that exists in Argentina.

What is the blue dollar?

The blue dollar is an exchange rate for the dollar that is different than the official rate. If an individual brings US dollars to Argentina, he is able to exchange them at the blue rate at one of the casas de cambio. There is a street called Florida in the center of Buenos Aires, where there are always many people chanting “cambio, cambio, casa de cambio”. When someone wants to exchange dollars to pesos, they can go up to one of these people and receive an exchange rate at the blue dollar.

On May 8, 2015, the official rate (exchanging dollars for pesos at a bank or taking pesos out of an ATM) was 8.82 Argentinian pesos to 1 US dollar. However, the blue dollar rate was 12.40 Argentinian pesos to 1 US dollar. This is a difference of 71.1%. Therefore, each purchase made with cash exchanged at the dollar blue rate instead of a credit or debit card saves a large amount of money.

Why does the blue dollar exist and how is it determined?

Argentina is in the midst of an era of hyperinflation. Many citizens of Argentina and businesses choose to invest outside of the country to protect their stock from the inflation. Therefore, the dollar blue has existed for several years allowing investments outside of Argentina. However, the difference between the official dollar and the blue dollar has considerably increased in the past four years and fluctuates daily.

In 2011, when Cristina Kirchner was re-elected as president, the AFIP (Administración Federal de Ingresos Públicos or Federal Administration of Public Income) dramatically increased their controls on the sale of foreign currency. This increased the prevalence of the casas de cambio and demand for the blue dollar.

Since then, the international reserves of Argentina’s Central Bank have decreased by almost 50% due to external debt. The current ratio between pesos in circulation and dollars in the international reserves is close to the value of the dollar blue. However, this is not the only determinant of the blue dollar rate. It also depends on the stock prices in the US and in Argentina and the demand due to government policy.

What does this mean for Argentines and travelers?

The blue dollar is indeed illegal, but it is obvious that it exists and there is very little done to stop its use. In fact, in two of the leading newspapers, La Nación and Clarín, the blue dollar rate is published next to the official rate each day. Although the law claims a heavy price for the unofficial buying or selling of foreign currency at up to eight years in jail, there are very few casas de cambio that are closed down. The elimination of many casas de cambio would only increase the demand for U.S. dollars and cause the blue dollar rate to increase. Some casas de cambio are obvious, with bills of different foreign currencies on the door, while others will lead you down a dark hallway into a room with a single table and lamp where you are able to count and check each of the bills. Furthermore, the police force is not known to intervene in stopping the blue dollar market. Once while in a casa de cambio, there was a police officer that entered. Suddenly, the others inside panicked in fear of being punished for exchanging dollars illegally, until it became clear that he was there to exchange dollars as well.

When buying or renting an apartment, people often pay in dollars to receive a discount. People also buy dollars at the blue rate when planning to travel from Argentina to the United States. Also, if the government knows that someone has dollars, they can take them when necessary, which occurred during the Argentine economic crisis of 2001. Therefore, the buying and selling of dollars is done through the unofficial market.

The election of a new president historically brings very significant changes to the economy of Argentina. With the upcoming elections in October, there will inevitably be changes to the blue dollar , but what these changes will look like is unknown.