Who doesn’t like to save? When planning a trip, one of the main points on the tourist list – if not the main one – is the budget : how much the trip will cost. In this amount, everything needs to be considered: from the purchase of tickets, accommodation and tours to how much money it will take to spend on the spot, whether to shop or pay for meals, for example.
It is for this reason that a question, for many, has a great influence on the choice of destination at the time: the value of the local currency. Countries where the real is valued tend to attract the attention of tourists . Researching very well – and following valuable tips – it is possible to make a very economical and advantageous trip to these destinations, but it is necessary to pay attention to many points.
At Latin America the real is the fourth most valued currency, behind Peru (sols), Uruguay (pesos) and Mexico (pesos).
“This directs eyes to other Latin-speaking countries with the Argentina [pesos] with greater devaluation of the currency against the dollar, followed by the Paraguay [guaranis] and Chile [pesos]. If the idea is to discover other continents, Turkey [lira] has the least valued currency, Morocco [dirham] and Egypt [libras egípcias] present similar opportunities”, emphasizes Marcos José Valle, economist and professor at Uninter.
According to the professor, the currency quotation is one of the indicators of better use of financial resources in terms of budget optimization, however, other variables need to be taken into account, such as the country’s local inflation, for example. Just because a country has the cheapest currency is not synonymous with being a good country to visit.
“It can happen that the local currency is devalued and the prices of products and services are very high depending on the local economic reality, which can be an equalizer of expenses and frustrate the expectation of buying more paying less”, he warns.
One way to avoid surprises when deciding on the trip based solely on the currency exchange rate is to investigate local prices, comparing them with expenses in Brazil: average routine lunch, more sophisticated meals, public transport tickets such as taxis and buses, daily hotels, tour and transfer prices. These comparisons will help in the perception of your purchasing power, allowing you to optimize your budget, whether you will have to be more regulated or squander your choices.
“To give an example, in Chile, a pizza is sold for 10,800 Chilean pesos, equivalent to 60.48 reais in reais – depending on the region of Brazil where you live, this can be cheap or expensive. A sophisticated dinner can cost CLP$ 100,000 (R$ 560) per person. Although our currency is more valued in relation to the countries to be visited, the parity is given in relation to a stronger currency, in this case, the dollar.
Thus, it is better to keep an amount of this currency on hand for eventual exchanges in local houses, or even for direct payments – the dollar is always recognized”, emphasizes the professor.
In practical summary: the dollar in cash can help you save a lot in these countries – it is possible to buy much more of the local currency having it in hand.
Another facilitator is to hire an international debit card remembering that 3 fees apply to the uses of this resource: withdrawal fee (depending on operator), exchange rate (charged when converting currency) and IOF (6.38%) – it is important to research advantages and benefits offered by operators.
Argentina, a special case
One of the most sought after destinations by Brazilians, according to travel platforms such as Decolar and Booking.com, Argentina is even higher this year. In the country, the official quotation “competes” with an informal market, called parallel. In the latter, exchange houses and part of the trade are interested in buying other currencies and end up selling the Argentine peso for a value that reaches less than half the official value – an advantage that can vary from 100% to 150%. Therefore, it is much more advantageous for the traveler to take cash.
The doctor Luiz Maciel was in Buenos Aires In September. In his suitcase, he took R$ 5 thousand to spend three days – considering that he would pay in cash to the hotel. Knowing about the informal market, he went to Florida Street, downtown, and looked for an exchange office to change the amount. If he were to follow the official price of the day, he would exchange 1 real for about 25 pesos. In parallel, he got them to pay 56 – more than double. This doubled his purchasing power. A perfume that in Brazil would cost R$ 1 thousand managed to pay R$ 491, for example.
For a full meal, he spent 2,250 pesos. As he had the money exchanged, he paid the equivalent of R$ 40. If he had paid on his credit card, the amount would more than double – in addition to the official quote, he would have paid the bank’s fees.
It is important that this exchange is made in a reliable place to avoid counterfeiting money. The tip is to avoid the so-called “arbolitos”, which are on the streets offering the service.
National products and local economy
Another important tip before leaving for the destination is to research the local economy, understanding which products are produced locally, whether on a large or small scale, and what is imported.
“Chile and Argentina, for example, are wine producers. Scheduling visits to wineries can allow you to experience great quality wines at great prices. Chile also offers a great diversity of seafood and preparations, given its geographical condition. In this region, red meat can be more expensive, as well as consumption of fruits and juices”, points out the professor.
A good research about the location of the trip can yield more economically than just the currency conversion. The saying “who converts don’t have fun” may in fact be true in practice, but not 100% of the time. So use these tips to convert – and have fun too.
Some examples of countries where the real has greater purchasing power:
- Argentina . Currency: Argentine Peso
- Paraguay . Currency: guaranis
- Chile . Currency: Chilean Peso
- Indonesia . Currency: Indonesian Rupee
- Morocco . currency: dirham
- Egypt . Currency: Egyptian pounds
- Turkey . currency: lira
Source: CNN Brasil
Bruce Belcher is a seasoned author with over 5 years of experience in world news. He writes for online news websites and provides in-depth analysis on the world stock market. Bruce is known for his insightful perspectives and commitment to keeping the public informed.
