What Currency To Use When Vacationing In Mexico
While it may seem a simple question to some, what currency you should use while vacationing in Mexico is often asked and more often gotten wrong. Most people know that the national currency of Mexico is the Peso, but most assume that the American dollar works just as well, if not better. It is a common misconception that Mexican merchants and vendors see the dollar as more desirable and revered, but that is not necessarily true.
Most retailers and merchants in Mexico will politely accept American dollars, but they prefer Pesos. The exception would be in Northern Mexico and Baja where merchants happily accept dollars and there isn’t much chance to offend. You just need to make sure in these cases that you get a fair exchange rate. It is also a better deal for the tourist to use Pesos because prices are almost always less expensive when using Pesos.
You can plan ahead and use a currency exchange service before you travel, although you may find that a currency exchange at the airport might give you the best exchange rate. A good bill amount to obtain might be 500 Pesos, which would come in handy for tipping the bellman or a waiter. You can use your debit or credit card for all your other transactions and you can take along traveler’s checks for any emergency that comes along. All of your cards and travelers checks can be replaced if stolen so don’t take an inordinate amount of cash with you.
If you run low on cash you can always replenish your pocketbook at the many ATM bank machines that are prevalent in resort areas. You can cash your traveler’s checks at an exchange house or a bank, which will result in the face value of the check multiplied by that day’s rate of exchange. If the place you go tries to charge a fee for doing this, go somewhere else, as it is not common practice to levy fees or commissions for cashing traveler’s checks.
And don’t forget that friends and family will appreciate and enjoy seeing coins and currency from distant lands when you get home. Be sure to keep some Pesos to give a show and tell when you return. If you have children you will especially appreciate how much they will enjoy showing off your “booty” to their friends. And putting some of the Pesos you get while on vacation into your scrapbook or photo album will be a great reminder of all the fun you had in Mexico.
Using the currency of Mexico will not only make your cash go farther, but it will also stimulate your mind as you take in all the colorful images printed on the Pesos and immerse yourself into the culture of Mexico. Go to a currency exchange service and get a lot of different small denominations. Learning what certain everyday items cost and how little you have to spend to have a good time will only serve to better your vacation experience. Have fun!
ALWAYS use the BANK to exchange money, the best ones are always bancomer and banamex. They give you better rate than exchange houses. Im mexican so i know. Never uses dollars on stores, they always take it lower than what it really is. most of the times to 10 pesos even tho right now is goin for almost 15. Also when the dollars goes up, exchang lots of dollars! you gain money just by doin that.Dont withdraw money in the ATM if you can, they charge sometimes lots of commisions, find out if your bank in mexico canada etc has a partnership in mexico, they might give you a better fee.
Thank you for the tips. I never had problems in Tijuana since they’ll generally take USD. People might generally be more friendly to you if you pay with the local currency though.
you can US Dollars or Mexican Pesos what ever you want both are excepted pretty much anywhere in mexico!
I think in most countries it is better to use local currency for purchases, particularly outside major resorts. If you ever fancy coming to see what it is like in Papua New Guinea too then let me know your intentions as it would be great to hear what you have to say. I think in general though, it is always worth remembering, that whatever your nationality, any money is usually welcome money!
Thanks for tips. What about euros? Im from EU country using euros, are there places to go in Mexico, where they take this currency also?
Using the local currency is always a good bargain. You are well in the know of the price you pay. However using a currency different from the country of visit can often be a losing proposition .
Besides using the local currency is very informative like you explained
I don’t know that it’s complicated to have such vacation with different use of currency.
Definately the USD in the North and the Peso anywhere elso. At some of the markets the vendors may give you a better price in USD, but let them make the offer. If you are travelling south of Mexico the USD is King but be warned… regardless of where you come from, if you are a tourist and you pull out a wad of $$$ in any currency, chances are you’ll be mugged for it! Travel safe… love Central and Sth America… but be cautious. Jamie
using or try the local thing while you visiting other countries is great experience, something to learn !
This is a great article about handling the local currency issue when in Mexico. We are planning to travel there this summer and this was one of the items we were worried about. Based on the article and the commenter’ss, I think our best bet is to convert our dollars into pesos. Especially knowing that the locals will usually give a worse conversion rate than the banks. I guess the trick is finding the best place to trade in your money so that you get the best exchange rate.
Yes you must run low on cash you can always replenish your pocketbook at the many ATM bank.
Thanks for the great tips. I’ve been to Baja Mexico a few times and fortunately never had any problems with money. Still I would be very careful using a credit card …
Maya
This is such an important topic. Most people dont think about the money difference or dont know enough info about it to understand the exchange rates.
It’s better to pay with the local currency… it’s better for you and it’s better for the seller.
You must have enough local currency for your trip. Otherwise you make use of your ATM with global coverage. In my case I have been using my ATM cards such as Cirus or PLUS accreditation.
Sometimes is better to change some money before the trip due to the exhange rate. I agree that is better to pay in the local currency.
While visiting any country, I make sure to keep the coins with me to give to my nephews. By the way Frank, I did not find a contact us information for you, as I wanted to pass on some compliments for this travel blog. I even searched for you on Google with “sirpi frank” but could not get any way to directly get in touch with you though.
I second always paying in the local currency – I couldn’t imagine someone paying for a meal out in the UK in pesos, it would cost about a million.
I agree with this, using dollars you are more likely to get the price “rounded up”. I have seen a few exceptions in Cancun – when I went to the supermarket it seemed like they had an official rate of excchange which was published and even though the real rate has got worse, they hadn’t changed inline.
The first time I went to Mexico I only used dollars. They disappeared quickly. The local currency is the only way to go.
ATMs have the best conversion rate, but make sure your ATM or credit card allows you to make withdrawals or a cash advance without additional fees!
This topic also reminds me to ask..what was that model that wanted to be paid in Euros, not dollars, b/c the dollar had decreased in strength??
Thanks for the sweet advice.
I just got back from Mexico, and your right, for the price a peso makes a good suvoneer.
I try with all the trips to bring the local currency. I have gathered a large collection. That is the good memories of holidays in addition to photos.
That is quite true. I’ve seen lots of questions on yahoo and a few travel forums about which currency to use in mexico and to change to pesos from home or there.
for a german tourist it is a lot of money to make vacations in a good club in mexico. what does it cost, if i leave in NY or chigaco and want to make 2 weeks holiday in cancun or somewhere else?
Its always safer to use the internationally recognised dollar instead of a local currency. Due to the lack of familiarity, its easy for someone to give you a fake note..my advise, always use the American dollar.
Hey,
It was really a pleasure to read your post. Very informative for all of us who wish to travel to Mexico. Whenever I travel to a foreign country I try to buy suitable currency. For example I went to Germany last year and bought Euro. I also went to China and bought yens.
I think an ATM card is always the best way to go. It keeps you from having to carry a lot of cash (safer) and you don’t have to deal with going to exchange your money everyday.
I often wondered about the different parts of Mexico and who took the dollar VS the peso. Baja is very friendly I’ve found and it true that they take about anything
Glad to know the dollar will be accepted. I was thinking of going to mexico this year.
Pretty soon we’ll all be using Amero’s!
I always thought the greenback dollar would go farther, but I suppose it is more polite to use the local currency.
Mexico is great but take care at the hight kidnapp rate:)
I believe in the distant past, the U.S. dollar was more desireable in many parts of the world, but that has drasticly shifted in the past decade.
Always use peso for safety.
Thanks for the tip again. I have to change it already to peso before I arrive Mexico
When i travel to another country I always have a little sum in that country’s currency on me and I never part with my ATM mastercard card that i can use everywhere in the world.. safest way to go in my opinion!
All the best,
John
It definitely pays to have as much information you can before you plan your travel – thanks for the tips. I am sure it will make may trips easier for a lot of people.
I recently visited mexico and i am glad i have read your post before vacating mexico.
When traveling in a foreign country, you will get the best exchange rate if you pay with your credit card. So whenever possible charge everything to your card. Just be sure to also carry some pesos for merchants that do not accept credit cards.
you can US Dollars or Mexican Pesos what ever you want both are almost used everywhere there
Punta cana vacation packages – great information i will sjuect this site to my network.
I always tend to use my visacard where I can but retain some local currency for taxi’s and tipping etc.. thanks for the useful article
Interesting post. Many Americans make the mistake of thinking that foreigners value US dollars above all else. The problem is that there is still the inconvenience for the merchant of having to exchange those US dollars for Pesos at some point. Also, unless they watch the economic markets closely, the merchant may not know the exact exchange rate.
It’s best to use pesos. I’ve found it’s better to use an ATM card to get pesos rather than exchanging at a bank or wherever…you get the best exchange rate that way. I’ve never been charged any fees for using an ATM in Cancun, but you might want to check with your financial with regards to that.
Is the peso the best currency though considering it’s slide against the dollar?
preparation should be the local currency is necessary, if we come to a place like mexico, so local merchants can accept our shopping without having to think about to exchange it again.
I think people should respect the country they are visiting and use the native currency whenever possible.
I love mexico and its nearby locaions – thanks for detailed article on currency as most people do not care about currency when they trip
I always use the USD when travelling – it’s an almost universal interchangeable currency