Money

Inflation has been a perennial thorn in the economies of every South American nation. Ecuador has responded to this problem by befriending the U.S. dollar -- in Ecuador, the U.S. dollar is the official currency. In other South American countries, you can expect the local currency to fluctuate while you're there, usually resulting in a better exchange rate for foreigners. You can usually use U.S. dollars for all transactions without much problem. Because of inflation, hotels generally quote their rates in dollars.

Note that most vendors prefer small bills and exact change. It's almost impossible to find someone who has change for a large bill. Many ATMs give out money in multiples of 1 or 5, so try to request odd denominations of money. For larger sums, try to withdraw in a multiple of 500 bolivianos instead of 1,000 bolivianos, for instance.

Carrying Money

ATMs -- The easiest and best way to get cash away from home is from an ATM (automated teller machine). The Cirrus (tel. 800/424-7787; www.mastercard.com) and PLUS (tel. 800/843-7587; www.visa.com) networks span the globe; look at the back of your bank card to see which network you're on, then call or check online for ATM locations at your destination. Be sure you know your personal identification number (PIN) and daily withdrawal limit before you depart. Note: Remember that many banks impose a fee every time you use a card at another bank's ATM, and that fee can be higher for international transactions (up to $5 or more) than for domestic ones (where they're rarely more than $2). In addition, the bank from which you withdraw cash may charge its own fee. To compare banks' ATM fees within the U.S., use www.bankrate.com. For international withdrawal fees, ask your bank.

You can use your credit card to receive cash advances at ATMs. Keep in mind that credit card companies protect themselves from theft by limiting maximum withdrawals outside their home country, so call your credit card company before you leave home. And keep in mind that you'll pay interest from the moment of your withdrawal, even if you pay your monthly bills on time.

Traveler's Checks -- Traveler's checks are something of an anachronism from the days before the ATM made cash accessible at any time. Given the fees you'll pay for ATM use at banks other than your own, however, you might be better off with traveler's checks if you're withdrawing money often. You can exchange traveler's checks at casas de cambio (money-exchange houses), usually for a significant fee. Many banks will not exchange traveler's checks, and those that do often have long lines. Note that in some countries, the American Express offices won't exchange even their own traveler's checks.

If you'd still like to use traveler's checks, you can buy them at almost any bank. American Express offers U.S. dollar denominations of $10, $20, $50, $100, $500, and $1,000. You'll pay a service charge ranging from 1% to 4%. By phone, you can buy traveler's checks by calling tel. 800/807-6233. American Express card holders should dial tel. 800/221-7282; this number accepts collect calls, offers service in several foreign languages, and exempts Amex gold and platinum cardholders from the 1% fee.

Visa offers traveler's checks at Citibank locations nationwide, as well as at several other banks. The service charge ranges between 1.5% and 2%; checks come in denominations of $20, $50, $100, $500, and $1,000. Call tel. 800/732-1322 for information. AAA members can obtain Visa checks for a $9.95 fee (for checks up to $1,500) at most AAA offices or by calling tel. 866/339-3378.

MasterCard also offers traveler's checks. Call tel. 800/223-9920 for a location near you.

If you do choose to carry traveler's checks, keep a record of their serial numbers separate from your checks in the event that they are stolen or lost. You'll get a refund faster if you know the numbers.

Credit Cards -- Credit cards are another safe way to carry money. They also provide a convenient record of all your expenses, and they generally offer relatively good exchange rates. You can also withdraw cash advances from your credit cards at banks or ATMs, provided you know your PIN. If you don't know yours, call the number on the back of your credit card and ask the bank to send it to you. It usually takes 5 to 7 business days, though some banks will provide the number over the phone if you tell them your mother's maiden name or some other personal information.

Keep in mind that many banks now assess a 1% to 3% "transaction fee" on all charges you incur abroad (whether you're using the local currency or U.S. dollars). But credit cards still may be the smart way to go when you factor in things like exorbitant ATM fees and the higher exchange rates and service fees you'll pay with traveler's checks.

Visa, MasterCard, American Express, and Diners Club are all commonly accepted in South America.

If Your Wallet Is Lost Or Stolen -- Be sure to tell all of your credit card companies the minute you discover your wallet has been lost or stolen, and file a report at the nearest police precinct. Your credit card company or insurer may require a police report number or record of the loss. Most credit card companies have an emergency toll-free number to call if your card is lost or stolen; they may be able to wire you a cash advance immediately or deliver an emergency credit card in a day or two.

Working With Local Currency

In most countries in South America, you can use American dollars without much of a problem. But if you're traveling in rural areas, it's always useful to have the local currency on hand.

Prices throughout this guide are quoted in U.S. dollars since local currencies can fluctuate, though conversion rates are provided in some sections.

Argentina -- The official Argentine currency is the peso, made up of 100 centavos. It was pegged to the U.S. dollar until the country's economic meltdown in late 2001, when it quickly devalued. Money is denominated in notes of 2, 5, 10, 20, 50, and 100 pesos; and in coins of 1, 2, and 5 pesos and 1, 5, 10, 25, and 50 centavos.

Bolivia -- The Bolivian unit of currency is the boliviano (Bs). You'll find coins with values of 1 and 2 bolivianos. Otherwise, all the currency is paper, in denominations of 2, 5, 10, 20, 50, and 100. It's very hard to make change, especially for a 100Bs note.

Brazil -- In an attempt to rein in inflation, the Brazilian government introduced a new currency in 1994, the real (R$). It was stable for several years, then devalued by almost 50% in 1999, after which it remained stable for most of 2000. In 2002, international speculation in advance of the presidential elections sent the real into a tailspin, arriving at a record low of nearly R$4 to the U.S. dollar. When it became clear that the new socialist president, Lula da Silva, actually planned to follow a quite conservative monetary policy, the real settled back around R$2.42 to the U.S. dollar. Prices stabilized, even going down for the first time in years. You can find real coins in denominations of R$1 and 1, 5, 10, and 50 centavos. Bank notes are available in forms of R$1, R$5, R$10, R$50, and R$100.

Chile -- The unit of currency in Chile is the peso, which comes in notes with denominations of 1,000, 2,000, 5,000, 10,000, and 20,000. There are currently six coins in circulation in denominations of 1, 5, 10, 50, 100, and 500; however, it's unusual to be issued 1 peso or even 5 pesos. Chileans commonly call 1,000 pesos a luca.

Ecuador -- The official unit of currency in Ecuador is the U.S. dollar. You can use both American and Ecuadorian coins, divided into 100 cents. Otherwise, all the currency is in the paper form of American dollars, in denominations of $1, $5, $10, $20, $50, and $100.

Peru -- The Peruvian currency is the nuevo sol, abbreviated "S/" and usually referred to simply as the sol or soles. Bank notes are issued in 10, 20, 50, 100, and 200 soles. Visitors are advised to be very careful of counterfeit bank notes. A sol is divided into 100 centavos, with coins in denominations of 5, 10, 20, and 50 centavo coins. U.S. dollars are also widely accepted across Peru for many commercial transactions.

Uruguay -- The Uruguayan unit of currency is the peso uruguayo (NP$ or $U). The peso comes in coin denominations of 1, 5, 10, 50, 100, 200, and 500 pesos; and bank notes of 50, 100, 200, 500, 1,000, 5,000, and 10,000.

Venezula -- The Venezuelan unit of currency is the bolívar, popularly referred to as bolos, and abbreviated as "Bs." Paper bills come in denominations of 5, 10, 20, 50, 100, 500, 1,000, 2,000, 5,000, 10,000, 20,000, and 50,000 bolivares. There are coins of 5, 10, 20, 50, 100, and 500 bolivares. There are even coins for céntimos (fractions of a bolívar), but the currency has devalued so much in recent years that all coins are virtually meaningless and increasingly rare.