Changing money in South America

11-24-2002

South America, our hemispheric co-continent which, despite its proximity, doesn't get the tourist attention of Europe and Asia.

But the numbers show more Americans are discovering that South America is a great, relatively inexpensive destination for business, pleasure and eco-adventures. Its 13 countries encompass a staggering diversity of natural wonders, culture, commerce -- and currency.

Unlike Europe, much of which has now taken the step of adopting a common continental currency, South Americans have generally clung to their national monetary traditions and banking practices. A trip involving visits to more than one nation will entail different currencies, from the Argentinean peso and Brazilian real to the Venezuelan bolivar.

Furthermore, their currencies can and do suffer inflation and devaluation, generating big numbers on price tags and restaurant bills that total in the thousands.

With all this in mind, here, assembled from a variety of sources, are some economic expedients to remember when visiting the Southern Hemisphere.

First, know that it's probably not necessary to obtain local currency before you arrive. ATMs are widely available in South America, and airport currency exchange banks are usually open at any hour. The exchange rates you get at the airport won't be the best, but they will be better than any you'll get outside the country. As in Europe, downtown banks usually offer the best exchange rates, while hotels, restaurants and small shops offer the worst.

In many countries, money changers can be found on the street, but know your currency and check their math. Many are honest business people, but some do use rigged calculators or cleverly manipulate thick wads of bills to cheat the unwary. If you're unsure of the local rate, shop around and get quotes from several money changers before accepting one offer.

In many places, U.S. greenbacks are accepted along with the local currency, often even preferred to the local bills. In fact, in Ecuador, dollars are the official currency.

Though South Americans happily accept crisp $20, $50 and even $100 bills, because of the prevalence of counterfeit currency, they tend to be very wary of well-worn paper money of any denomination, U.S. or local. Furthermore, smaller establishments may have trouble changing larger-denomination bills, even in their own currency.

Also, don't exchange more money than you're likely to spend during your stay in that country, as changing it back to dollars or to another currency will entail extra charges. That's doubly true in countries with rapid inflation; there's no point holding a pile of bills with value that decreases by the day.

Cash also generally fetches better exchange rates than travelers' checks. Travelers' checks do have the advantage of added protection against loss or theft, but they can be much more difficult to exchange than greenbacks, especially in smaller towns. American Express, Thomas Cook and Visa travelers' checks are the most widely accepted, although Citibank checks are usually subject to lower commission rates if cashed at one of Citibank's Latin American branches.

Credit cards are widely accepted across the continent, but be aware that not all stores and restaurants with window stickers saying they accept MasterCard, Visa or American Express actually do. Also ask about credit card fees. Many establishments tack on extra charges of up to 15 percent for people paying with credit rather than cash, and some countries tax credit card charges, so it pays to ask at the time of purchase. Also be aware of the potential for fraud with credit cards, especially at places that still take impressions the old way or by hand. Ask for and destroy any carbon copies of your signature.

Cash advances are generally also available with a credit card, but know that you'll pay a fee of several percentage points, and interest charges begin accruing immediately. Local banks also may place limits on how much cash you can draw and the hours transactions can be made.

Before you go, it's wise to let your card issuer know that you'll be traveling in South America, or fraud detection software might flag your card when unexpected charges start showing up. Don't let your wallet get too empty before discovering you'll have to wait until Monday to get it refilled.

In general, however, the easiest and best legal exchange rates are available through ATMs using a MAC account, or its equivalent.

PLUS and Cirrus are the two primary international acceptance systems, and many banks accept only one or the other. And although automatic teller machines are widely available, some countries honor primarily PLUS system cards, while others primarily accept Cirrus. Checking before you go will help avoid nasty surprises. You can call your bank or check online (for PLUS/VISA cards www.visalatam.com/english.html or Cirrus/MasterCard or www.mastercard.com) and get specific street locations of their machines.

Of course, this advance knowledge doesn't guarantee that a working machine will be there when you arrive. That, and the possibility that your card won't be accepted or that it will be lost, demagnetized or otherwise rendered inoperable dictate the wisdom of carrying several cards, as well as alternative means of payment.

And it's also important to take the usual precautions of making sure someone isn't lurking over your shoulder when you're waiting for the machine to spit out your bills.

Finally, in a pinch, cash usually can be telexed between banks in about 48 hours, assuming, of course, that you have sufficient funds in your account at home.

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