3. Money

Our advice to clients is the same as that which we follow ourselves when travelling: for most destinations in Latin America: it is easiest to take a mixture of cash (US dollars or euros, which can be exchanged for local currency) and credit/debit cards (as many different cards as possible, in case of any problems).  For further advice, please read on:

3.1 Cash

We do not recommend your taking any currency other than US dollars - except in Cuba (see 3.3 Local Currency), as they can be difficult to exchange. Do not take out from your home country, or accept as change in Latin America, any US dollar notes that are dirty, damaged (even a tiny rip) or defaced. You will not be able to spend or exchange them.

There are many counterfeit $50 and $100 dollar bills in circulation in South America, especially in Colombia, Peru and Bolivia. There have even been (very rare) cases when banks have issued forgeries to customers. It is extremely difficult to spot a forged bill, but you should be aware that they may be slightly discoloured, printed on inferior paper or lacking a watermark. $100 bills are not accepted in Colombia and those whose serial number begins with CB are routinely refused in the rest of Latin America.

Even though the official currency of Ecuador is the US dollar, most people (including banks) will not accept $100 bills, therefore we recommend asking for smaller denomination notes when obtaining dollars.

3.2 Credit and Debit Cards

Credit cards are widely accepted to make payments in larger hotels, better restaurants, souvenir shops and stores, and to obtain cash advances. They are also acceptable as ‘proof of funds’ at borders. Visa is the most widely accepted for both purchases and cash advances, followed by MasterCard. American Express is not as widely accepted but can be used to purchase additional travellers' cheques should you run out.

Credit card purchases are charged at the official rate of exchange, which can be lower than that generally available in exchange houses. There may also be taxes or surcharges added (around 5%). Cash advances are straightforward on Visa, MasterCard and American Express in most countries. Advances are widely available using an ATM (cajero automático), for which Cirrus, Maestro, Plus and Delta cards may also be used. The rate of exchange is often the most favourable, and long bank queues can be avoided.

Before leaving you should check with your bank or credit-card company whether they impose any handling charges.  Make sure you have a separate note of the number and validity of your cards, as well as the phone numbers to call should they be lost or stolen. It is also worthwhile advising your bank that you intend to use your card abroad (and in which countries). Some banks detect an irregular spending pattern, assume the card stolen and suspend the account, which can take days to sort out. Check your account carefully on return from Latin America to ascertain that payments for the card are legitimate. Despite it being theoretically possible to 'live off' your credit card, we also advise you to take sufficient funds in cash (preferably as much as your travel insurance provider will cover you for) for the following reasons:

• In some places it can be difficult and time-consuming to obtain a cash advance
• When a currency is unstable, credit-card transactions may be temporarily suspended
• If a credit card is lost, it usually takes at least 4 working days to have a replacement sent, and this service is not always available
• ATMs often run out of cash, or are out of order
• In Cuba, credit cards impose limits on the amount of cash you can withdraw. Also, credit cards issued by US companies are not accepted (please see seperate Cuba money advice section below). This is also true of travellers' cheques. Again, Visa and MasterCard are the best cards to take.

3.3 Local Currency

Generally speaking, it is not advisable to try to acquire Latin American currency before you travel (i.e. in the UK). If a currency is available in high street banks or foreign exchange outlets the exchange rate is usually very poor (and they will not be interested in buying any Latin American currency back when you return). Strikes notwithstanding, you should be able to change dollars and/or travellers' cheques at the airport/land frontier, upon arrival. In Central America, small denominations of US $ cash are often as readily accepted as the local currency.

If travelling between neighbouring countries in Latin America any surplus local currencies can usually be exchanged into the next local currency, but normally only at border posts or airports, and at a loss. It is best not to have too much local currency left over at the end of your trip. It is not always easy to buy back dollars, though this facility has improved over the past few years. In some countries such as Venezuela, you will need to keep your official exchange slips in order to change money back (please see separate Venezuela money advice section below).

Currencies have stabilised as governments have adopted more monetarist policies, and the once ubiquitous black market has now virtually disappeared from the streets of Latin America. There is also a far smaller variation in exchange rates on offer at different types of outlet (e.g. banks, exchange houses, souvenir shops, airports etc) than previously. It may be a good idea to pack a small calculator so when you change US $ cash at the exchange rate of the day you can work out for yourself how much you should receive. This could work as a deterrent to avoid scams. Please note that as a backup, it is also possible to get cash advances on Visa or MasterCard.

3.4 Travellers’ Cheques

Travellers' cheques are increasingly less favoured by travellers who find their use cumbersome in comparison with bank cards. If you do prefer to take travellers' cheques, with the exception of Cuba you should take US dollar cheques only (American Express is by far the most widely accepted brand) which you should be able to order from your home bank as long as you give them sufficient notice. It is advisable to take a variety of denominations. Do not forget to bring the receipt of purchase with you (carried separately), as you will need this in the event of cheques being lost or stolen. Occasionally, banks ask to see these receipts before cashing your cheques.

3.5 Money Advice by Country

Colombia
Please note that it is very difficult to exchange travellers' cheques in Colombia.  Cash cards with the Cirrus symbol are accepted by most cash machines and credit cards are widely accepted.

Cuba
Visitors to Cuba should carry as much cash in small denomination notes of sterling and/or euros as their travel insurance policy will cover - both sterling and euros are accepted in most banks and some of the larger hotels.  These currencies are changed into pesos convertibles - "CUCs" - a Cuban "dollar". There's usually an exchange fee too.

US dollars are changeable in Cuba but large commissions are automatically charged often without warning so it’s advisable not to take dollars. Credit cards (not from US banks) are also accepted in some places but also carry heavy commissions. American Express travellers' cheques are widely accepted but have to be in euros and not US dollars.

There are ATM machines in Havana and other major cities such as Trinidad and Santiago de Cuba but their reliability is questionable so it is often safer and easier to get a cash advance over the counter of a bank or cadeca exchange house with your passport and credit card. Airport departure tax in Cuba has to be paid in CUCs.

Note also that there is a Cuban peso  (peso cubano), which is the currency Cubans use in their own local shops.  Unless you’re going to try and buy bread or fruit in a local shop, you shouldn’t need any Cuban pesos.

Venezuela
Venezuelan bolívares (BsF) are obtainable, but not easily, in the UK. However, we advise you to take $US in cash (as much as your insurance will cover you for), because it’s difficult to change travellers' cheques even in large cities outside Caracas, and many ATMs don’t recognise British credit/debit cards. In cities, cards are acceptable in shops and restaurants – at the official rate.

Parallel-market (black-market) traders often offer rates which are much more attractive than banks and bureaux de change (cambios); however previous travellers have reported money-exchange scams taking place.  So the safest option is to change money through the official channels. The least safe is to get involved with shady men in sometimes not-so-dark corners. If we are providing transfers for you, the driver or guide may offer you a rate which is double or more than the official rate. It’s technically illegal, but our suppliers turn a blind eye, since it’s a reasonable alternative to the parallel-market.

Note also that you’ll need to provide official exchange slips if you want to change money back from Bolivares.

At the time of writing in January 2010, Venezuela announced a devaluation of the bolívar against the US dollar. In theory, this should make things cheaper for visitors with hard currency, but it's too early to tell.

Sources:
Wikitravel gives a useful overview - see the section on money, FCO Advice.

3.6 Cost of Living

The cost of living in Latin America differs enormously between countries and can fluctuate wildly over time within a single country or region. As a general guideline, the cost of living for a tourist in Brazil, Chile, Costa Rica, Cuba and Belize tends to be similar on average to the UK. Honduras, Ecuador, Mexico, Guatemala, Peru, Bolivia, Colombia, Argentina, Venezuela, Guyana and Suriname are generally cheaper (French Guiana is in the Euro Zone). It should be mentioned that sometimes services directed at tourists (e.g. hotels and restaurants) are disproportionately more expensive.

If you are on an escorted group tour, please consult your final letter or trip dossier for advice on daily expenses.

The price of restaurant meals in Latin America varies as much as it does in Europe. At the bottom of the scale, cheap, filling and often none-too-hygienic meals can be obtained in markets, often for just a couple of dollars. This is usually the best source of regional food, but be aware of the high risk of stomach upsets. Modern snack bars, often of the fast-food variety, are much safer, if uninspiring.

A bit more upmarket, you will find restaurants with pleasant décor, uniformed waiters, and menus offering both international and local dishes, but you will pay on a scale of US $10 (Bolivia, Ecuador) to US $30 (Chile) for a full meal. Large towns will always have a supply of expensive restaurants with French or Italian menus. In some cities, such as Lima, Rio de Janeiro and Buenos Aires, these would be similarly priced to their equivalents in Europe.

Special tastes are catered for to a certain degree, more so in specifically tourist destinations. Chinese restaurants are everywhere and mostly cheap. Vegetarians are catered for sporadically, and though menus are often unimaginative, they are rarely at the expensive end of the scale. It is extremely difficult to find a range of gluten- and wheat-free products in Latin America.

Since taxi fares vary widely, you should always find out how the tariffs operate before you get in. Some taxis in large cities use a meter. They are usually cheaper than in the UK. From many airports you can buy special fixed-price tickets inside the airport building so you know you are not being overcharged. Otherwise, be sure to agree on a price before taking an unmetered cab.

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