At present, most European countries, the USA, Australia, Canada, New Zealand, Israel and many others use a floating exchange rate system. However in Argentina the government uses a form of fixed rate which they determine from time to time. This fixed rate is known as the official rate, or white rate and sits at around 9 pesos to the dollar. If you use your credit or debit card in Argentina, this is the rate you will be charged. However, just because the government says 9 pesos are worth the same as 1 dollar, it doesn’t mean it’s true. I can tell you the price of my car is $100,000, but that doesn’t mean that it is worth $100,000. Therefore we have another exchange rate, which represents the perceived true value of the peso, and is known as the “dolar blue” or the blue rate. At present the dolar blue is sitting at around 14.5 pesos to the US dollar. As you can see this is over 50% more than the white rate and will make quite a difference if you are using your savings to live in Argentina. On top of all of this, it is important to note that inflation in Argentina is sitting at around 40% per annum. Therefore, if you wanted to buy a house that was 1 million pesos last year, you would now have to pay 1.4 million, and next year over 1.8 million. This obviously means that the money you have in a bank or under the mattress is becoming less and less valuable. Hence many young Argentines want to change their current wages or savings into US dollars, to protect the value of their savings.