How significant would said arbitrage be, though? In terms of percentages of individual purchases, sure, but if there's a way to scale it up it isn't obvious to

How significant would said arbitrage be, though? In terms of percentages of individual purchases, sure, but if there's a way to scale it up it isn't obvious to me. In Mexico, the same problem exists, although by the sound of things it isn't nearly as acute as in Argentina. In general, established and professionally run businesses have change; small and informal ones do not. (I think this stems from security concerns: large and well-run businesses have private security and insurance; small ones do not.) After a while you learn the strategy of making certain purchases at certain places and where those places are. (This can sometimes leave you in a minor bind when you're outside your regular stomping grounds.) You learn the optimal amounts of money to withdraw from different banks' ATMs. So, having small change buys you not just goods and services — all money does that. It also buys you a bit of time and saves you from aggravation. It really sucks to wait 5 minutes to get change back from a small purchase, as the cashier leaves the store to ask all the neighboring stores if they have change. Finally, the same phenomenon exists in stable and well-developed countries too, albeit writ small: just ask someone who lives in a small apartment without a washing machine whether he tends to hoard quarters.