May 27th, 2008
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!
August 4th, 2008
Simon Says :
I always use the local currency - it’s much easier not having to calculate what exchange rate the seller is offering and how much pesos I should get back. And, just imagine, a Mexican would try to pay in pesos in the US - people would just give him a strange look.
August 17th, 2008
Andrew Says :
When I was in Tijuana, I remember using just the US Dollar, but that was only because it was so close to the US border, however, I can’t imagine being somewhere else in Mexico and trying to use my US dollars and not Pesos. I think that the best tip in here is that actually your money will probably go further with the Peso, and you don’t run the risk of offending anyone. Great tips in here!
August 19th, 2008
Thranduil Says :
I`d agree that using Pesos is the way to go in most of Mexico. Local currencies are generally preferable for most countries unless they have problems with currency devaluation - in which case they`d likely prefer US dollars or Euros.
I`ve found that using the ATM machines are a great alternative to carrying lots of cash too. Reasonable exchange rates (often better than exchange places) and the transaction fees are generally pretty decent too.
August 21st, 2008
nepal blog Says :
very useful blog for travelers.
August 22nd, 2008
Erica Says :
All these reasons you mentioned are true, but I think that even people will be more friendly when you pay by their currency. Of course you can’t hide fact that you’re a tourist but they’ll see that you’re trying and possibly appreciate it.
August 29th, 2008
Charity Says :
Thanks for the tips. I’ve been to Tijuana and Baja Mexico a few times and fortunately never had any problems with money. They’ll generally take USD and it’s easy enough to find an ATM in the main cities.
September 2nd, 2008
Simon Slade Says :
It is good to know that prices are often less expensive when using Pesos. If I ever visit Mexico the Peso sounds like the way to go, and a few coins of the local currency always make for a great traveling memento. Thank you for your helpful tips!
September 3rd, 2008
Ohio Junk Yards Says :
I will tell you first hand some things to think about. My father in law was in Mexico when her received an inner ear bacterial infection and actually could not walk.. lost permanent hearing in one ear. The issue was the level of care we are used to getting in the US is not how it works elsewhere. Be sure you’ve checked into life flight where a lear jet can fly you back to your own doctor. Check with your local insurance agency as well.
September 4th, 2008
Holden Beach Says :
I remember the good ol’ days when you could buy stuff dirt cheap and everyone wanted the American dollar. Makes you feel weird when you travel internationally now and no one will take a US dollar.
September 9th, 2008
Bethany Marquee Says :
I think people should pay in the original Mexican currency, Pesos, its great having the option to pay in dollars but nowadays countries are losing their individuality, such as with the Euro. And so I’d prefer to use Pesos.
September 10th, 2008
Kimberley Australia Says :
A lot of vendors will take, and may even prefer US dollars, especially in high tourism towns, but I think you are right when you state that using peso’s will make your cash go further.
September 11th, 2008
captivating capiz Says :
I’m not really sure about that but since the devaluation and unsteady movement of dollar currency greatly affects all of the world market as well as costs in the local countries you might as well consider using Peso which happens to be the same currency we use here in the Philippines.
People here enjoyed the devaluation not knowing the effects of those are even more humongous in terms of prices of major commodities. People here like receiving large amounts of money in the local currency.
September 16th, 2008
Deweytheexplorer Says :
Quite informative post there, I thought that the locals in Mexico would gladly accept USD, however based on your article there are only few local stores that would accept foreign money. Thanks for the great tips as well!
October 8th, 2008
eGruve.com Says :
I used my visa credit card and aslo accumulated points to use on my next vacation. Credit cards work great.
October 11th, 2008
Travel Blog Says :
I’m sure the conversion cost of taking dollars would make it not worth their while. I could see wanting dollars back when Mexico had much worse inflation, but not so much now.
October 24th, 2008
Escorted tours for me! Says :
I never would have known Mexicans would accept the dollar. But you’re right, it is nice to immerse yourself in a countries culture and I think it is sad when people don’t embrace a foreign land, instead trying to simulate their home environment abroad.
Food is a good example, I think when abroad you should sample all the local cuisine, when in Rome!
October 30th, 2008
Mexico City Accommodation Says :
I completely agree, when I first arrived in Cancun, I was utterly confused to be quoted prices in American dollars for pretty much everything. Then I realised that Cancun was just an exception. Mexicans around the rest of the country definitely prefer the peso.
November 1st, 2008
Macy Says :
Travelling nowadays to different parts of the world could be costly considering the dollar rates now decreased but maybe not for Mexico?
November 10th, 2008
cheap auto glass Says :
Thank you for the insight! I am visiting Mexico this spring for a while and did assume the dollar would be fine. Thanks again!
November 13th, 2008
Cape Town Says :
Thanks for the great information on Mexico, it’s always good to know a few things about other countries.
November 15th, 2008
leutasch Says :
im planning to go in mexico after my vacation here in rieth, thank for the information, it will be useful, hope i can get a cheaper tour guide over there.
November 19th, 2008
Vancouver Bed and Breakfast Says :
It is always good to change the currency over when traveling somewhere that requires it.
November 20th, 2008
Stephen @ Manzanillo Mexico Says :
Hey, great guides and articles to Mexico! I’d love to do a link exchange with you as I run a travel Mexico blog.
As for currency to carry, you should use pesos definitely. Why? Because the current exchange rate for pesos to the dollar is 13 to 1. If you just use your American dollars at restaurants and stores they are only going to give you a 10 to 1 rate. Not fair, and they know it.
It is wayyyy easier just to use your debit card at an ATM machine once you are in Mexico and withdraw what you want from your account in the US. It couldn’t be simpler. The usual fee is a paltry 1% and they give you the best exchange rate possible. Don’t worry if the number is $500, that’s in pesos. It’s like $35 US right now.