Inflation, devaluation and an interesting time to be in Argentina

M

Still legal currency but I guess soon to be discontinued

OK, so this is the economist in me writing.  I have just read that the new president of Argentina has today got rid of all currency controls, "Macrieconomics" they call it, and I am wondering what the effects will be.

When we arrived in Argentina I was aware that the street price of an American dollar was much higher than the official rate.  I was also aware that Argentinians really wanted dollars rather than pesos.  Therefore I made sure I brought enough dollars with me.  The official rate of exchange from dollars to pesos is 9 pesos to the dollar; the street price, or "blue market" price, is 14.2!  And this is more than easy to access ... just need to go to the most touristy part of town and there are be plenty of young gentlemen willing to do the exchange.  Just two hours ago there were lots of them in Bariloche's central piazza.

But that is all about to change, seemingly.  I even think the banking system knew something was coming as all the one and two peso notes are really in need of replacement.

Today the Argentinian peso floated freely.  Now, if I go to an ATM and "purchase" £100, what rate do you think I will get?  The papers are quoting 19 peso to the pound, or just over 12 pesos to the dollar.  I daren't try it today as I am sure that Nat West will give me the old rate.  But I might try £10 tomorrow just to see what happens.  If there is an inkling of the economist in you, watch this space!

A week in Chile

(More photos to come)

The Argentina to Chile border ... It took 3 hours to get through!

Chile turned into a bit of a gastro tour ... partly because the food and wine was so good and reasonably priced, partly because we were churched and museumed out, and, in Pucon, because of the weather.  Santiago was a great place ... it all started with a brilliant 4 hour free city walk by "Franco" (why haven't I done these excellent tours before?).  This ended at Pablo Neruda's love nest which we did visit again the next day to view properly.  Won't forget the tininess of the place nor its idiosyncrasies ... all original 60s stuff, ship themed, and personal.  No surprise that one of his most famous poems is the ode to the onion.  This was the home of a man who loved to live, wine and dine, and entertain.  He was also an outspoken politician, was awarded the Nobel prize for literature, and was a friend as well as a foe of "Che".  Only this year has the Chilean government released papers that suggest Neruda was killed by Pinochet.  He certainly had a full and interesting life.

Sitting outside Neruda's house at end of tour

What else did I learn about Chile?  The majority of the population live in Santiago.  They like sugar.  They love sugar!  Everything is sweeter than in England, but, as I said, we did manage to find lots of palatable, cold, white wine.  Most of their export money nowadays comes from copper.  And it's a lot more developed than I ever imagined.  If anyone comes here they should visit Valporaisa ... I didn't because I didn't fancy another bus journey but it is a cultural centre on the coast ... like Trancoso in Brazil ..  full of quirky street art, painted houses and 15 vernacular railways/lifts.  Wish I had been able to fit it in.  Have to admit, I always thought Santiago was on the coast ...why on earth would a country the shape of Chile have its capital inland?  Well, apparently, the Spaniards were hoping to conquer great swathes of land to the South and had plans for somewhere else to be the capital .. Santiago was only ever meant to be temporary.  The Malpuchoes however managed to hold on to the southern parts.  Over 50% of the population claim to have indigenous links .... in stark contrast to Argentina where almost everyone is descended from Europeans.

Pucon, in "the Lake District" was probably amazing, but most of the time we were there it was overcast and poured with rain.  We did go for a 5 hour bicycle ride through the woods one day which made us feel virtuous.  The rest of the time we drank a lot of wine!  As I said before, so good to be back in the civilised world and the world of good wine.  Thank you to Sarah Page for her company on these exploits!

Sorry Sarah, the only photo I have of you for mo (until I can download from camera).  Fun memories!

Goodbye to high altitudes

Travelling down the Andes took us to the Chilean towns of San Pedro de Atacamba and Salta and then on to Argentinian Mendosa.  Chile and Argentina are the two most developed economies of South America, rated as "very highly developed" and the difference from Bolivia and Peru was clear to see.  Streets made of tarmac with pavements rather than dust tracks and roadworks, comfy hotels, white cotton sheets and clean towels, working internet most places you go, modern shopping centres and western style clothes.  I have to admit that it felt good to be back in the more developed world .... nothing to do of course with the fact that at last I could order a glass of white wine .... nor that when it arrived it was good, cold and the size of half a bottle of wine!!  

Salta

I did wonder why I was so pleased to say goodbye to Bolivia. It is a lovely country with lots of potential, gracious people (60% of them are directly descended from indigenous populations), the president seems to be the only one that is popular with his citizens in this neck of the woods, (hairstyle aside) and he seems to be doing a goodish job to boot; the country is growing faster than any other Latin American country.  But that altitude did really get to me.  Our last 4 days had all been over 3000ms .... I don't think I will be keen to travel at such heights again.  Everest has been struck off the bucket list!  I was however sorry to say goodbye to our excellent Bolivian guide, Marisol.  She had coped well with all the issues thrown up by a not fully functioning economy and a group of less than 100% fit travellers. 

Marisol, second home stay, Bolivian desert homestay.

After about 24 hours of being back down below 2000 ms, I began to feel really well.  I commented that I felt as though I was on some kind of speed!  I didn't seem to need sleep, my appetite was back, and my legs wanted to move!  Maybe it was all in the imagination, but perhaps there is something in this high altitude training malarkey!  I certainly felt as though I had had a shot of oxygen or something energising.

San Pedro  

 

I didn't however think that much of San Pedro ... which existed purely so tourists could travel to and from Bolivia or visit the salt flats, but Salta was OK.  Much more enjoyable was Mendoza, a green city in the arid part of Argentina ... thanks to a well established irrigation system.  Most of the streets have gullies either side so that all rainwater can be collected.  It is also Argentina's most famous wine growing region so a wine tour was a must on the agenda.  This ended with a rather extravagant lunch overlooking vineyards: thank you to Natalie for these great photos!  Can't say I liked the wines that much .... although we did taste 12 different ones so it's probably more likely a case of memory failure! Most were Malbecs, rich red wines .... a far cry from my favourite tipple.  

My final day in Mendoza was spent wandering around the massive San Martin Park.  Reminiscent of London parks and a far cry from the dusty public areas found in the outskirts of towns in Bolivia and Peru.  Families were out with kiddy bicycles and picnics, slow morning  joggers were everywhere, cyclists pottered rather than sped (didn't see much Lycra I'm glad to say) and grand children were taking grandmothers to the cafe for an afternoon drink.  An exercise class being run by a heavily pregnant fitness trainer was enjoyed by all, including an elderly gentleman who had abandoned his bicycle to join in the activities!

A national monument to The Army of the Andes commemorating the liberation of Argentina was particularly impressive.  It is made from 14 tons of bronze and includes the usual accolades to the heroes of the revolution as well as the idols of the indigenous populations, including the ubiquitous condor.  Lady Liberty is also depicted although I was pleased to see that here she was decently covered up; in Salta she was portrayed as being topless!  

The monument was located so that it could overlook Mendoza as well as the Andes.  The view of the city was a little impeded by the growing trees, but the Andes were there in the distance; not so majestic as in the earlier part of my travels, but still imposing.  This sign made me smile ... 980 ms seemed beautifully low to me, but do remind me, how high is Snowdon?