Should I exchange the dollar for pesos?

[abearz]

I've been to Mexico, and I've never had to exchange in the past. However, this is my first time on the Pacific/Riviera side of the country. If I were to shop with local vendors, would they accept US dollars? Is there ever a situation where I would need pesos in the tourist areas?  I just want to be prepared.

[Ashland]

You will be fine with USD. No reason to exchange for pesos unless you were going to spend a length of time in Mexico. For the average amount a tourist will spend not worth the hassel. We have done many many port stops on the Mexican Riviera with the most recent one being this past January.

[Ine]

If you need Pesos only for food or drinks, you are o.k. with US$.

The exchange rate will not be in you favor. In general expect about 18 Pesos or less for 1 Dollar.

The exchange rate at a bank is around 20 pesos for 1 Dollar. 

In case you need to do some shopping, Walmart and most large shops give back your change in Pesos. 

Edited August 21, 2022 by Ine

[kimberlym322]

An idea no one ever thinks of is, if you want to have like a 100.00 in foreign money, you can always western union it to yourself before you go on vacation.  Like right now today (8/21/22) if you were to send yourself 50.00 to Mexico you would get about 1002 pesos.  I know a few friends that do this.  You just have to know where a local WU is in the country your going to.

[2wheelin]

Dollars are accepted most everywhere. Just be sure to estimate before paying what the converted amount should be at about 18:1. We were cheated in a restaurant that insisted on what calculated to 12:1. Then the waiter called us ugly Americans because we informed them we could calculate and estimate without a calculator in hand. They. Think no one knows the difference and most people don’t catch it.

[iancal]

Very few countries have an official, prescribe exchange rate for their currency.

 

Vendors take foreign currency as a service to customers and as a way to secure business.  In reality they do not have to accept it.

 

As such, the vendor can set any currency exchange rate that he wishes.   It is not theft.  Most vendors will tell their price in your currency.

 

Restaurants are a problem. Not just in Mexico.    Our advice is always to ask the second question prior to ordering....what exchange rate you give.

Edited August 21, 2022 by iancal

[Hlitner]

2 hours ago, kimberlym322 said:

An idea no one ever thinks of is, if you want to have like a 100.00 in foreign money, you can always western union it to yourself before you go on vacation.  Like right now today (8/21/22) if you were to send yourself 50.00 to Mexico you would get about 1002 pesos.  I know a few friends that do this.  You just have to know where a local WU is in the country your going to.

It is an option, but one should not ignore the fees.  So, for example, to move $100 (US) to Mexico it will cost you an $8 fee.  8% is actually a lot more than we pay to simply use ATMs in Mexico (we get the wholesale rate of exchange minus the usual 1% International banking fee).   The other problem is that you would need to get yourself to a place that handles Western Union which is not always convenient.  So, for example, if I look at Puerto Vallarta (our winter home) there are no pick-up locations near the cruise port so you would likely need to use a taxi to just get to a pick-up location!  There is an Electra location within a 15 min walk from the port so that might work,  But it means spending the time and effort to find this location and likely waiting in a queue behind many others who go there to pay their utility bills.  So not only do you have the 8% fee, but you may need to pay for transportation just to pick up your money.  And we know some of these pick-up places and they would likely involve a line (queue) while you wait for others to handle matters like paying their utility bills.

 

We have always seen Western Union as a great back-up plan for cases when you desperately need money (such as if you lose your wallet) and can get a friend or family member to send it to the nearest place that accepts WU.  

 

ATMs have become the standard (worldwide) for folks who need cash.  Unlike a WU pick up spot you will find ATMs just about everywhere and they work 24/7.  

 

Hank

 

 

[Joebucks]

If they take US dollars (and they do) I wouldn't think twice of it. Between fees, time spent exchanging, and trying to figure out exact amounts needed, there is little advantage.

[navybankerteacher]

14 hours ago, abearz said:

I've been to Mexico, and I've never had to exchange in the past. However, this is my first time on the Pacific/Riviera side of the country. If I were to shop with local vendors, would they accept US dollars? Is there ever a situation where I would need pesos in the tourist areas?  I just want to be prepared.

Local vendors are delighted to accept US$ - you will take a bit of a hit on the exchange rate they use, but unless you spend a lot, it is likely to be minor.  You really do not want to come home with unused Pesos.

[Toofarfromthesea]

8 hours ago, kimberlym322 said:

An idea no one ever thinks of is, if you want to have like a 100.00 in foreign money, you can always western union it to yourself before you go on vacation.  Like right now today (8/21/22) if you were to send yourself 50.00 to Mexico you would get about 1002 pesos.  I know a few friends that do this.  You just have to know where a local WU is in the country your going to.

 

I can't speak to this practice, but in some European countries, some of the worst currency exchange ripoffs I saw proudly posted the Western Union logo.  So beware and be aware of what the exchange rate should be.  When I want some foreign currency for a trip I simply order it from my bank, Wells Fargo.

[iancal]

2 hours ago, Toofarfromthesea said:

 

I can't speak to this practice, but in some European countries, some of the worst currency exchange ripoffs I saw proudly posted the Western Union logo.  So beware and be aware of what the exchange rate should be.  When I want some foreign currency for a trip I simply order it from my bank, Wells Fargo.

We were in Portugal for five weeks in May/June.

 

Western Union stores and Euronet ATMs had the absolute worst FX exhange rates.  Often 5 points or more higher than anyone else.

[cruizergal70]

For Mexico, I would carry Pesos. Your bank should be able to provide the Pesos. Yes, they will take USD, but the exchange rates will be crap and will vary from place to place.

Edited August 22, 2022 by cruizergal70

[navybankerteacher]

44 minutes ago, cruizergal70 said:

For Mexico, I would carry Pesos. Your bank should be able to provide the Pesos. Yes, they will take USD, but the exchange rates will be crap and will vary from place to place.

Bad exchange rates would only be significant if you spent a lot -- and, in fact, if you are buying a large ticket item, wouldn't you bargain a bit for it ?--- and paying in US $ is generally preferred.

[DirtyDawg]

19 hours ago, Hlitner said:

...we pay to simply use ATMs in Mexico (we get the wholesale rate of exchange minus the usual 1% International banking fee).   

 

Hank

 

Hank, do you get the wholesale rate or just a very low retail rate plus the 1% fee. By wholesale I'm talking about what your bank pays in the FX market when it goes out and buys $100M in pesos, for example. 

[navybankerteacher]

1 hour ago, DirtyDawg said:

Hank, do you get the wholesale rate or just a very low retail rate plus the 1% fee. By wholesale I'm talking about what your bank pays in the FX market when it goes out and buys $100M in pesos, for example. 

You get the interbank rate plus the fee.  That (undefined) notion of "a very low retail rate"  is what FX desks at airports rely upon to gouge their customers.

[Hlitner]

2 hours ago, DirtyDawg said:

Hank, do you get the wholesale rate or just a very low retail rate plus the 1% fee. By wholesale I'm talking about what your bank pays in the FX market when it goes out and buys $100M in pesos, for example. 

The term "wholesale" is mine and I think Navybankerteach's use of the "Interbank" rate is correct speak :).  But we are talking about the lowest rate that is available at the time of your transaction.  But then the international banking system processes your transaction and adds a 1% international services fee to that interbank rate.  Put simply, you will get the best available exchange rate by using a fee-free (and no international exchange fee) ATM card of major credit card.   If you exchange money at a change kiosk or bank, your rate will generally be 3-7% less.  

 

I should emphasize that for a traveler/cruiser that is just talking about a few hundred dollars of transactions, paying a higher rate is not going to break the bank.  For those of us who live in foreign lands (for all or part of the year) the exchange rates do matter and can add up to real money.  But the bottom line is that you will always do well if you simply go to a bank ATM machine to get your cash.  And please notice the word "bank" since privately owned ATMs (such as Travelex) will often give you a terrible rate.  

 

For those looking for something akin to the Interbank rates you would want to use an online site such as "XE.COM." 

 

Hank

[jackiel3290]

We regularly travel to Puerto Vallarta and most businesses in stores take US $. When going to the Mercado, they prefer Pesos. If you are taking a taxi, they take US $, but if you ride a city bus, you need peso coins. It depends on where you are using money whether you need pesos or not. We have gotten a good exchange  rate at our resort ( not my usual experience other places) and only convert what we think we need. 

[klfrodo]

On a cruise to Mexican ports. I go with USD.

On a land vacation to Mexico, I take Mex Pesos that I exchanged at my local AAA.