ARS - Argentine Peso

If you are planning on learning to dance a passionate tango in Buenos Aires, indulging in tasty empanadas, or perhaps entering the beef industry in Argentina, you will need the Argentine peso. Distinguished by various adaptations and large exchange value fluctuations, the Argentine peso has a long, interesting history and various features that distinguish it from the other pesos available in Latin America and globally. These other pesos include the Chilean peso, the Colombian peso, the Cuban convertible peso, the Cuban peso, the Dominican peso, the Mexican peso, and the Philippine peso, among others.

History of the Artentine peso

The current form of the peso that is in use in Argentina is the 1992 peso. This peso is preceded by a long currency history and shaped by the various political and structural shifts experienced by Argentina. Beginning with the country’s origins under Spanish rule before 1826, the name peso first appeared when it was given by the Argentinian locals to the Spanish 8-real coin. This name became common enough so that it was retained after Argentina gained its independence. As Argentina then embarked on its independent growth and development as a nation, six currency variations took place until the adoption of the current peso convertible in 1992.

The different currencies that transpired in Argentina reflect the nation’s political and structural shifts. The first of these currencies includes the peso fuerte in 1826. Along with the convertible peso fuerte, the non-convertible peso moneda corriente was also introduced in 1826. Following structural changes in the country and governmental shifts, around 1881, the peso moneda nacional was introduced and became one of the most traded currencies in the world in the early 20th century. The peso moneda nacional currency featured gold, silver, and copper coins. This currency also replaced the depreciated peso moneda corriente with paper notes. The next Argentinian currency to be distributed was the peso ley, which was distributed in 1970. The peso ley was followed by the peso argentino in 1983, which was only in circulation for 2 years. After the peso ley, the austral was the currency in place between 1985 and 1991, which was also the period recognized as the period of hyperinflation in Argentina. The current peso was introduced in 1992. It is also referred to as the peso convertible because its exchange rate was set by the Argentinian Central Bank at a rate of 1 peso to 1 US dollar. The fixed exchange rate, however, was dropped after the 2001 crisis.

Coins and notes

The peso has two divisions: coins and notes. The available coins have values of 1, 5, 10, 25, 50 centavos, as well as a 1 peso coin. If you are lucky, you might come across one of the few commemorative 2-peso coins, which feature the images of world-famous Argentinian writer and poet Jorge Luis Borges and the beloved Argentinian first lady Eva Peron. Other rare coins include some 50- and 1-peso coins that commemorate the 50th anniversary of the creation of UNICEF, the establishment of woman’s suffrage, and the establishment of Mercosur. In 2010, 1-peso coins feature national landmarks to commemorate the bicentennial anniversary of the May Revolution.

These commemorative coins may be better kept as souvenirs or collector’s items, however, because the Argentinian “change problem” has made it so that small denomination currency and coins are rare. This is especially problematic in the Argentinian capital, Buenos Aires. For example, many storeowners do not accept payments and void the sales of items that would require them to give the customer change in coins. Especially for those traveling in Buenos Aires, then, bigger notes and electronic forms of payment are more useful.

The peso also features notes. The paper banknotes distributed in 1992 come in values of 1, 2, 5, 10, 20, 50, 100 pesos. However, in 1992 the 1-peso note was exchanged for a 1-peso coin. At present, there are two types of bills currently in circulation. First, the bills from 1992 are in use. These bills have the inscription “Convertibles de curso legal,” which notes that their value was fixed to the same corresponding value of US dollars. The newer bills, introduced in 2002, do not have this text. Both of these types of bills are 155 millimeters by 65 millimeters in size.

One aspect of this currency to note is its wide fluctuation in value relative to the U.S. dollar. At first, the peso convertible was established with a fixed rate of 1 peso to 1 US dollar in 1992; however, the 2001 financial crisis led to the abandonment of a fixed rate. After this point, the peso has experienced various value shifts, including a maximum devaluation of 4 pesos to 1 US dollar. Careful attention to the current exchange rate, then, is recommended when traveling or doing business in Argentina.