Stay Current With Currency

Chapter 8 Mexican Connection Stay Current With Currency

Mexican Currency and Exchange

Mexico is primarily a cash economy. Cash offers a level of monetary security that a cashless system cannot. We recommend that you bring plenty of U.S. dollars to exchange for pesos, the Mexican currency. The currency sign is $ or sometimes MN$ (Moneda Nacional). It comes in denominations of 20, 50, 100, 200, 500, 1000 (paper) and coins 1, 5, 10, 20 pesos and 50 or less centavos.

In mid-September 2024 the official bank exchange rate was 19.22 pesos = 1 US Dollar. The rate changes every day. It is recommended when exchanging money to acquire smaller bills (50/100/200 pesos and less) since at small stores, cafes, etc. it is often difficult to make a change.

Currency Conversion Calculator

Bank ATMs often offer the best exchange rate. Be sure to notify your bank’s security or customer services department before you travel out of country so they can anticipate foreign withdrawals. Otherwise they may think your account has been hacked and freeze the account. Consider opening a separate account. Make a list of all your credit card, ATM, and passport numbers and email them to a web based email account.

Ask your bank what fees they charge for foreign ATM withdrawals. They vary and they are not fixed. If the rate sounds too high try to negotiate a lower rate. They want your business and may often offer a better deal on fees to stop you going to another bank. It only costs the bank a paltry amount for an ATM withdrawal so any fee they collect is almost 99% profit.

Credit cards are accepted in Mexico’s larger towns, major tourist areas, large hotels and restaurants, and large supermarkets. Mexico gas stations normally take cash, credit, and debit cards, as well as government and private company “vales de gasolina” or gasoline vouchers. Check before you start pumping fuel in case they don’t. It is always best to take some cash with you. You can exchange up to $500 at Casas de Cambio (Exchange kiosks). There are at least eight exchanges in Ensenada and three in Tecate.

ATMs in Mexico that dispense pesos require you to enter a 4-digit PIN code. They usually have the best exchange rate.

The cash economy of Mexico is in contrast to the United States where all or almost all of retail purchases are paid for using credit or debit cards. Use of cash in the USA has steadily decreased from 24% in 2015 to 18% in 2018 to 14% in 2022. Americans with lower incomes like less wealthy Mexicans continue to be more reliant on cash than those who are more affluent. In 2022 30% of US residents whose household income fell below $30,000 a year said they use cash for all or almost all of their purchases in a typical week. That share drops to 20% among those in households earning $30,000 to $49,999, and only 6% among those living in households earning $50,000 or more a year.

Guide to Money, Finances & Banking Services in Mexico

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