> Before You Go… Currency/ATMs

Before You Go… Currency/ATMs

Whether you’re a backpacker traveling Latin America on a budget or an all-the-frills luxury traveler, you’re going to need to plan ahead regarding the handling of monetary units.

The traditional way to carry money while traveling has always been traveler’s checks. These are becoming less common and less useful today as many places are hesitant to cash them. Those that do may involve long waits and heave surcharges. Another option in the past was to obtain foreign currency from your bank before departing. Besides the obvious security issues of carrying around so much cash, many banks no longer order foreign currency.

Instead, you might consider using your ATM card while traveling (if you don’t have one it may be a good time to get one). ATMs are fairly accessible in all of the major cities of Latin America, though they may be fewer and further between when traveling to remote areas. But if you know you’ll be traveling to a more scarcely populated area just plan ahead and get the cash in hand before you go. The main thing to keep in mind with using foreign ATMs is the fee that you will incur for each withdrawal. Most times you will be charged a fee if you don’t happen to be withdrawing money from a branch of your bank. Plus, you will incur foreign currency conversion fees, which while small, can add up quickly. For this reason, it is a good idea to do as few withdrawals as possible. Note that you must have a 4-digit PIN number in order to use an ATM in Latin America. As a back-up many credit cards can have PIN numbers assigned to them in the off chance that you misplace your ATM card. Though the interest rates may be higher for withdrawing money with a credit card, it may get you out of an unexpected pinch.

If you do plan on exchanging currency while abroad, or even with simple ATM withdrawals, it is imperative to use official institutions and verify all of your transactions before leaving the premises. Fraudulent money is much more common in Latin America than it is other places. This is why you will notice people examining the paper money that you use with purchases to make sure you are not, unbeknownst to you, passing off fraudulent bills. Get in the habit of doing this yourself when exchanging or withdrawing money. Although you may not be completely familiar with what the bills are supposed to look like, simply comparing their size is an easy way to spot a fake. Sometimes the denominations will vary in size from one amount to the next, i.e., the fives may be smaller than the tens, but if you get multiple bills of the same denomination take a good look at them to make sure they all look the same.

One other small suggestion is that when exchanging or obtaining cash be sure to request smaller bills. When paying with larger bills you will definitely be asked if you have anything smaller, and if you don’t you will get plenty of guff, so it can’t hurt to be proactive.

Although ATM and credit cards do make for the most convenient method of handling money, it is still a good idea to keep an “emergency stash” of cash somewhere safe. Many Latin American countries charge an exit tax, which most commonly is only payable in cash, when you depart. In case you happen to spend all of your money this emergency stash can be a lifesaver.

Below is a list of local currencies for all Latin American countries to help get you started on your planning. You’ll see that Ecuador, El Salvador, and Panama have actually adopted the US dollar as their main form of currency. In Ecuador the US dollar became legal tender in March of 2001 after the previous currency, the Sucre, experienced dramatic losses of its foreign exchange value. Ecuador still mints their own coinage, which is similar in size and of the same denominations to coins circulating in the US. El Salvador introduced the US dollar as dual currency with their Salvadoran Colon in 2001, but the dollar has since completely replaced the colon. Technically the official currency in Panama is the Balboa, but the country stopped printing it in 1941 in favor of the US dollar. Similar to Ecuador, all coins are of the same size and denominations as US coins, though the images are Panamanian.

A great online resource to view current exchange rates and to calculate conversions can be found here: http://www.xe.com/

Latin American Currencies

• Argentina- Argentinean Peso
• Belize- Belizean Dollar,
• Bolivia- Bolivian Boliviano
• Brazil- Brazilian Real
• Chile- Chilean Peso
• Colombia- Colombian Peso
• Costa Rica- Costa Rican Colon
• Cuba- Cuban Peso
• Dominican Republic- Dominican Peso
• Ecuador- United States Dollar
• El Salvador- United States Dollar
• Guatemala- Guatemalan Quetzal
• Honduras- Honduran Lempira
• Mexico- Mexican Peso
• Nicaragua- Nicaraguan Cordoba
• Panama- United States Dollar
• Paraguay- Paraguayan Guarani
• Peru- Peruvian Nuevo Sol
• Uruguay- Uruguayan Peso
• Venezuela- Venezuelan Bolivar