My wife and I have just recently heard of the problem of Black Market Pesetas (as well as Francs, Lires,etc.) that has arisen due to the introduction of the Euro. Does anyone know if this is causing any problems with tourists carrying pesetas ?

Dwest,

The pesetas, and other currencies that you refer to, are not really black market ones. They are called dinero negro(black money), because it is money coming fom incomes for which people don´t pay the due taxes. Many people have this money in hidden accounts, in cash, ..., and are hurrying to use it to buy flats or whatever, because soon their notes will be worth nothing, thus inflating prices.

As you see, this has nothing to do with tourists or their money.

Ignacio

Thanks for the clarification. The inflation is really what I was concerned about. I did not know if the US Dollar to Peseta exchange rate will be be affected by the time I get into Spain at the end of September.

The 'official' inflation rate is 3.5 to 4%, lately closer to 4%. However, the cost of rentings and all the related with leisure is rocketing. They are the components of infletion that have grown more the last years, and this year too!

However, as you can read in the forum, it is still a great deal for those with strong currencies, like the N. Americans.

Ignacio

The existence of dinero negro should have little or no effect on you as a tourist or the value of your tourists dollars. If, however, you were thinking of purchasing real estate in Spain, I would think that now is a bad time. The market is inflated and some people have said that it is due to the conversion of dinero negro into hard assets before the inroduction of the euro. If this is true, then you may see a fall in value after the euro is fully phased in (and all the dinero negro is invested). So have fun but dont buy any investment property.