Currencies of Latin America
Latin America has a diversity of currencies, each reflecting the economic reality of its country. Knowing exchange rates is essential for travelers, international traders and anyone who handles money in multiple currencies.
US dollar (USD)
The dollar is the world's reference currency and plays a crucial role in Latin American economies. Many countries in the region tie their monetary policy to the dollar, and it is common for the prices of real estate, vehicles and savings to be quoted in dollars.
Paraguayan guarani (PYG)
The currency of Paraguay. Characterized by high denominations (1 USD ≈ 7,500 PYG). Paraguay has a relatively stable economy with controlled inflation. The guarani has stayed within a predictable range in recent years.
Argentine peso (ARS)
The Argentine currency has experienced significant devaluation in recent years. Argentina has implemented currency controls (the "cepo") that create differences between the official and the parallel (blue) rate.
Mexican peso (MXN)
One of the most traded currencies in Latin America. Mexico has a flexible exchange rate and a liquid foreign exchange market. The Mexican peso has shown relative strength in recent periods.
Colombian peso (COP)
Colombia maintains a flexible exchange rate. The Colombian peso can be volatile, especially in response to changes in oil prices, the country's main export.
Chilean peso (CLP)
Chile has an open economy with a flexible exchange rate. The Chilean peso is influenced by copper prices, its main export product. It is one of the most stable currencies in South America.
Brazilian real (BRL)
The currency of the largest economy in Latin America. The real can be volatile, but Brazil has a sophisticated financial market with diverse investment options.
Peruvian sol (PEN)
Peru has maintained a prudent monetary policy, making the sol one of the most stable currencies in the region. The partial dollarization of the Peruvian economy is an important factor.
Tips for currency exchange
- Compare rates: Always compare at least 3 sources before exchanging currency.
- Avoid airports: Exchange rates at airports are generally the worst.
- Use no-fee cards: Some international debit/credit cards offer competitive exchange rates with no fees.
- Monitor trends: If you are not in a hurry, watch currency trends to exchange at favorable moments.
- Be careful with the parallel market: In countries with currency controls, exchanging on the informal market can have legal implications.
Frequently asked questions about currency exchange
The exchange rates shown are approximate reference rates. For real transactions, check with your bank or currency exchange, since exchange rates change constantly and institutions apply spreads (the difference between the buy and sell price).
Historically, the Mexican peso and the Peruvian sol have been among the most stable currencies in the region. However, a currency’s strength depends on multiple economic factors and can change over time. The Paraguayan guarani has also maintained relative stability.
Keeping a portion of your savings in dollars can protect you against the devaluation of your local currency. It is especially advisable in countries with high inflation or economic instability. However, diversifying across different assets is generally better than concentrating everything in a single currency.
Options include banks, authorized currency exchanges, digital platforms (such as Wise, PayPal, Western Union), and local fintech apps. Banks usually offer less favorable rates than specialized currency exchanges.
In some countries like Argentina, there is an official exchange rate (regulated by the government) and a parallel or "blue" rate (set by supply and demand in the informal market). The difference between the two can be significant and reflects economic distortions.