Exchange rate - Reality vs. Headlines

There are 8 replies in this Thread which has previously been viewed 3,375 times. The latest Post () was by Rice.

1st Official Post
    • Official Post

    Being now glued to the exchange rate updates again, I wanted to report my recent experience.

    As I mentioned in another thread, the rate I am getting at my local cueva is always below the official exchange rate, which is a bummer.

    So I decided to give my foreign credit card a try yesterday to see what was the applied rate.


    Wed 25 Sept 2018 - Official Exchange rate: 40, informal: 38.9 (source: Ambito Financero); actual rate at the cueva: 36.8

    • Café Cabrales 239 ARS, paid with Citi debit card (no foreign transaction fee), Mastercard debited 6.18 USD - Actual exchange rate: 38.67
    • Día 113.85 ARS, paid with Citi debit card (no foreign transaction fee), Mastercard debited 2.59 USD - Actual exchange rate: 38.59
    • Zentra 95 ARS, paid with Schwab debit card, VISA debited 2.59 USD - Actual exchange rate: 38.1
    • PintArte 242.59 ARS, paid with Citi debit card (no foreign transaction fee), Mastercard debited 6.52 USD - Actual exchange rate: 37.20


    ?(8)X/:S:/

  • serafina

    Changed the title of the thread from “Exchange rate - True vs. advertised” to “Exchange rate - Reality vs. Headlines”.

    What I don’t like about using the card is that they apparently use the exchange rate prevailing at the end of the billing cycle.


    So if I made a decision on a purchase based on today’s 41.3 rate and the rate dipped back to wednesday’s 37.8 on the last day of the billing cycle, I’d really regret the purchase. Were the change completely linear in one direction, it would be an easy decision to use the card.

    Quote from Rice

    What I don’t like about using the card is that they apparently use the exchange rate prevailing at the end of the billing cycle.


    So if I made a decision on a purchase based on today’s 41.3 rate and the rate dipped back to wednesday’s 37.8 on the last day of the billing cycle, I’d really regret the purchase. Were the change completely linear in one direction, it would be an easy decision to use the card.

    Is it not one rate per day?


    I think it changes every day at close of business...


    Any bankers here to clarify....?

    • Official Post
    Quote from Rice

    What I don’t like about using the card is that they apparently use the exchange rate prevailing at the end of the billing cycle.


    So if I made a decision on a purchase based on today’s 41.3 rate and the rate dipped back to wednesday’s 37.8 on the last day of the billing cycle, I’d really regret the purchase. Were the change completely linear in one direction, it would be an easy decision to use the card.


    When I use my card I get instantly notified of the purchase through my bank app, and of course by bank shows the amount in USD though the transaction is in pesos.



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