Which currency for Mexico

[Latel]

I don't know if this is the right place to post this but here goes....
I am going to Cancun, Mexico in 2 weeks and was planning to take American Dollars as I usually do when I go there. I have been told by my travel agent (in UK) that from Sept 13th Mexico are no longer accepting American Dollars.
I have heard from different places that, yes they are still accepting them (as they love the $US there) and other places that some places are not accepting them.
I would rather take dollars as I am going to Orlando in December and thought I could take any leftover dollars there with me, which I can't do if I have Mexican Pesos.
What currency would you take?
Thanks for any advise.

 

[NHdisneylover]

Both of my parents live and work in Mexico (but on the other side--Puerto Vallarta). They work with travelers every day. I will email them and ask and post back as soon as I hear something.

 

[pogo791]

I have been told by my travel agent (in UK) that from Sept 13th Mexico are no longer accepting American Dollars.

Good grief. Find yourself a new travel agent!

Mexico no longer accepting U.S. dollars? Who is he/she trying to kid? The Mexican economy is very heavily dependant on the tourist dollar, and this goes double for high-touríst-density areas such as Cancun.

The rumor (such as it is) is probably due to the new federal law in Mexico that is intended to cut down on money laundering. Effectively, it limits U.S. currency deposits into Mexican bank accounts to $4,000 a month for individuals, and $7,000 a month for businesses.

For this reason, some businesses - such as airline offices - will no longer accept payment in U.S. dollars, because accepting just a few payments a month would put them over the limit. (The airline offices can, of course, accept credit card payments.)

That law does not apply to the banks themselves, after all, part of their business is foreign exchange!

To be perfectly clear:
- yes, you can exchange your dollars (and pounds sterling, for that matter) in banks in Cancun.
- you can also exchange your currency in cambios (money exchange offices).
- you can also exchange your currency at your hotel.
and
- you will find that many shops and restaurants are quite happy to accept dollars (as long as these are small amounts, and they would not be at risk of going over the $7,000 dollars a month limit).

However, since the peso still remains legal currency, you should change some of your money into pesos before or when entering the country ...

 

[GeorgeG]

If you use a credit card they will show the exchange in pesos vs your home currency.

 

[NHdisneylover]

Good grief. Find yourself a new travel agent!

Mexico no longer accepting U.S. dollars? Who is he/she trying to kid? The Mexican economy is very heavily dependant on the tourist dollar, and this goes double for high-touríst-density areas such as Cancun.

The rumor (such as it is) is probably due to the new federal law in Mexico that is intended to cut down on money laundering. Effectively, it limits U.S. currency deposits into Mexican bank accounts to $4,000 a month for individuals, and $7,000 a month for businesses.

For this reason, some businesses - such as airline offices - will no longer accept payment in U.S. dollars, because accepting just a few payments a month would put them over the limit. (The airline offices can, of course, accept credit card payments.)

That law does not apply to the banks themselves, after all, part of their business is foreign exchange!

To be perfectly clear:
- yes, you can exchange your dollars (and pounds sterling, for that matter) in banks in Cancun.
- you can also exchange your currency in cambios (money exchange offices).
- you can also exchange your currency at your hotel.
and
- you will find that many shops and restaurants are quite happy to accept dollars (as long as these are small amounts, and they would not be at risk of going over the $7,000 dollars a month limit).

However, since the peso still remains legal currency, you should change some of your money into pesos before or when entering the country ...

This is pretty much accurate--but I am still waiting to hear from my parents on if either of them thinks small vendors, taxi drivers and the like no longer want to take dollars (they often have preferred them before--and yes I have gone down for a week or two at a time and not exchanged any currency!). You will absolutely be able to exchange at the bank once you are there though if you run into an issue.

 

[Imzadi]

If you use a credit card they will show the exchange in pesos vs your home currency.

^ This.

I traveled to France for one day, through the Chunnel. I just went to the nearest equivalent of an ATM machine, stuck in my credit card, and it automatically converted it to French money. (It was still the franc back then.) I took out enough for money on hand. Anything else I charged directly with my credit card. The conversion was automatic.

 

[DVC-Don]

Heck, I went to Quebec a couple of years ago and in some rural areas they would not take US currency.

 

[SandrA9810]

I can understand underdeveloped countries like Mexico, Cuba, and the islands to take in American money. Mostly because they receive a lot of money from family in America, and their peso is practically worth nothing.

But why would a developed country like Canada, even accept US money?? When I flew to Manitoba... I was in the north end, in the middle of no where. Any case, they never took a US dollar. Although I was told, that most the vending machines would accept an American quarter. But that was to their benefit, at the time the USD was worth more. And here and there, I've found other currency in my change living in Miami and Orlando.

 

[Kimberly]

If you use a credit card they will show the exchange in pesos vs your home currency.

Yep! I visit Cozumel quite a bit, and always use either of my credit cards first. I rarely carry cash on me, and with Mexico's crime rate, it's a good idea not to carry any down there.

 

[Drew Sailbum]

You are best off withdrawing cash from a local ATM once you are in Mexico. There is indeed a new law and even relatively small shops in tourist areas can run up against the monthly limits.

The issue is solely with purchases made in US cash. Credit card or other forms of payment are not affected.

You can arrange your ground transportation and pay for it in advance with your credit card. From there you can withdraw some pesos and/or pay with the card as you go.

 

[SandrA9810]

Just don't forget the usual 3% fee for currency exchange.

 

[lemondog]

From what I have heard on the Cruise Critic message boards (we are taking a cruise to Mexico in January), the big "tourist" towns like Cancun, Cozumel, etc. will still accept American dollars, especially the little street vendors and whatnot.

My husband and I traveled to Russia in 2002 and the people there BEGGED us to pay with American dollars! Although there was a group of about 5 men that would practically attack us every morning as we exited our hotel, asking to change the $$ for us (this was a small hotel in a smaller city, not in Moscow). They knew since we were American our money was "good" and they much preferred to keep American dollars on hand instead of rubles because it was much more stable. So we would exchange a small amount with them for incidental purchases, and use our American dollars to purchase souvenirs and other items.

 

[NHdisneylover]

Yep! I visit Cozumel quite a bit, and always use either of my credit cards first. I rarely carry cash on me, and with Mexico's crime rate, it's a good idea not to carry any down there.

How do you pay for taxis? Ice cream? The little things like that? I agree that carrying large amounts of cash (anywhere really) is not a good idea, but none at all???

Oh, OP my dad says taxi drivers are taking dollars in PV still but people are not wanting them like the used to.

 

[Latel]

Thank you for all of your advise. I will take a small bit of Pesos with me and take more money from the ATMs if I need it.

 

[mdsoccermom]

Starting TODAY, September 17, there IS a new law in effect governing the use of USD. Yes, you can use dollars. However, when in Mexico, you can use them only for transactions under $100.00. You may not use them for purchases above that. Businesses can also decide not to accept dollars at all. In addition, hotels and exchange booths will not change any more than $1,500 per person per month into pesos.