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Any Benefit to Getting Pesos for Use in Cabo?

Negociant

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Been there many times and never needed pesos. However, the USD/Peso conversion rate is now 1/21.5. Holy smokes. Every time I have been there is has been somewhere between 11 - 14. So it has me wondering whether this time it might save some money to use pesos while there. Anyone have a thought on this?
Thanks.
 

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You can use your credit card in most places, just make sure they charge it in pesos (and you don't have international fees). Your bank should give you the best conversion rate. If you take cabs, you'll need pesos (about 200/ride).

We also found that negotiating prices with pesos in small shops was a better deal than US dollars.
 

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You can plan on overpaying for any purchase made using USD instead of the currency of the country. If you don't mind overpaying for everything, have at it.
 

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Or, in other words- For the best prices and fairest-to-you exchange, use pesos in Mexico. Any time you use USD or dollar denominated American credit card, you are at the mercy of local merchants who will be sure to make the exchange rate favorable to them.
 

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I always use pesos or a credit card with no international charges, but I have a question...
When the peso goes from 10+ to 20+ to the dollar, does that affect the Mexican people as far as their daily staples are concerned?
I would guess the price of oil affects their daily prices, but as the price of a barrel of oil has been going up, have the prices of daily goods followed?
 

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I always use pesos or a credit card with no international charges, but I have a question...
When the peso goes from 10+ to 20+ to the dollar, does that affect the Mexican people as far as their daily staples are concerned?
I would guess the price of oil affects their daily prices, but as the price of a barrel of oil has been going up, have the prices of daily goods followed?
Generally, the tourist areas will creep up prices to match the exchange rate, but rarely track as fast. Prices at the stores (Wal Mart) were a bargain. 12 packs of beer were about 6 bucks, jars of salsa and refried beans were .50-.75.
 

dioxide45

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Keep in mind that you won't get that same exchange rate when you go to buy physical cash at your bank. I was checking today and call my bank to see what I could buy Pesos at. The rate online was about .046, the bank buy price was about .051.For $5000 Peso, it was about $30 US$ more to buy cash at the bank than what the online prices show. Those prices you see online are the rate that they are paying on the market for large sums of money. There are additional costs dealing with storing and shipping physical paper currency.

That said, we will be buying some Pesos in the next few days. May buy $5000 peso, which really is only about $250 US. If the conversion rate gets better, we may buy some more. For the most part we will use our credit card where we can and will get exchange rates closer to those you see online and in the paper.
 

easyrider

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Doesn't the cash machines in Mexico use the current peso to usd rate ? Usually we exchange at the resort for the resort rate.

Bill
 

dioxide45

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Doesn't the cash machines in Mexico use the current peso to usd rate ? Usually we exchange at the resort for the resort rate.

Bill
Isn't the resort rate usually worse than just about anywhere?
 

Passepartout

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Doesn't the cash machines in Mexico use the current peso to usd rate ? Usually we exchange at the resort for the resort rate.

Bill
BANK ATMs will give the 'official inter-bank' rate, then charge a couple bucks per transaction for the Mexican bank that owns the ATM, and a $1.50 or so to your American bank, then in all likelihood it will charge you a 1%-to 3% foreign transaction fee.
 

dioxide45

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The concern is, will the rate go up or town before the next trip? We travel in May. Do we buy some Peso now at home to hedge against the US$ getting weaker against the peso? Obviously, it could get better.
 

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The concern is, will the rate go up or town before the next trip? We travel in May. Do we buy some Peso now at home to hedge against the US$ getting weaker against the peso? Obviously, it could get better.


I think you meant the peso getting weaker ;)

Does this chart help at all? Does the date January 20, 2017 ring a bell?

Screen Shot 2017-01-05 at 5.14.35 AM.png
 

easyrider

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Isn't the resort rate usually worse than just about anywhere?

I think your right. Last year we exchanged for 1 / 14 at the resort while the rate was 1 / 17. We were limited to $300 a day per person and had to show our passport to exchange. It cost about 90 pesos for a $300 exchange. It was very convenient and likely worth the 90 pesos which was less than $5 usd.

We use credit cards at the stores like Mega, Walmart and Costco. We pay on-line for activities with credit card. Pay at the resort with credit card. We use pesos for gas, restaurants, flea markets and mini markets.

Bill
 

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That said, we will be buying some Pesos in the next few days. May buy $5000 peso, which really is only about $250 US. If the conversion rate gets better, we may buy some more. For the most part we will use our credit card where we can and will get exchange rates closer to those you see online and in the paper.
At the current trajectory of dollar/peso valuation, I don't think you want to be holding very many pesos. I certainly wouldn't pay any extra for them.
 

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At the current trajectory of dollar/peso valuation, I don't think you want to be holding very many pesos. I certainly wouldn't pay any extra for them.

Unless of course you plan on ever returning to Mexico. We go every year, and are happy to bring them back with us. I'll be buying plenty of pesos soon for our upcoming trip, but am still tracking the exchange rates.
 

easyrider

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Are you people buying pesos in the USA from the bank ? If so what is the dealio ?

Gracias

Bill
 

Phydeaux

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Are you people buying pesos in the USA from the bank ? If so what is the dealio ?

Gracias

Bill


That depends upon the dealio you'd be referring to. What specific dealio would you like to know more about?
 

easyrider

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That depends upon the dealio you'd be referring to. What specific dealio would you like to know more about?

The going to the bank at home in the USA to get pesos dealio. This would be handy when heading to Loreto. The resort in Loreto didn't have the ability to exchange very much money. The town is so small that the peso is the main currency. I guess I should call my bank.

Bill
 

davidvel

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The going to the bank at home in the USA to get pesos dealio. This would be handy when heading to Loreto. The resort in Loreto didn't have the ability to exchange very much money. The town is so small that the peso is the main currency. I guess I should call my bank.

Bill
Wells Fargo converted US dollars to Pesos at no charge to customers (or 7.50 non customers).
 

dioxide45

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The going to the bank at home in the USA to get pesos dealio. This would be handy when heading to Loreto. The resort in Loreto didn't have the ability to exchange very much money. The town is so small that the peso is the main currency. I guess I should call my bank.

Bill
Do give you bank a call or stop in and ask. They will tell you the Peso buy price. The price isn't as good as you would get at an ATM in Mexico. The price I was quoted yesterday of .051 works out to about 1 US$ to $19.61 Peso. The bank likely won't have Peso on site to sell you, but they can order it their through their home office or from a service provider. Our bank is usually able to get the cash in within a couple days and then I have to stop in to pick it up. You should be able to order just about as much as you want.
 

pedro47

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We always uses pesos in Mexico because you can get better deals with the venders.
 

Phydeaux

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We always uses pesos in Mexico because you can get better deals with the venders.


Unfortunately not so for many of the gringos that have no clue using their foreign US currency. Absolutely true when you know what you're doing, have pesos, and know the correct exchange rate. Mexicans aren't stupid. They'll gladly take your US currency when you're willing to overpay. Example: would a waiter rather get a $10 USD tip or 200 P? They'll take the USD every time, at todays exchange rate.
 

easyrider

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Bank of America's exchange for today is $10,000 pesos for $495 usd. Seems good enough for me.

Bill
 

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That's 20.20 per USD. Oanda says that 10,000 pesos would be $466.53 (21.43 each) at the official bank rate. Send me the extra $30 if that's good enough for you. :)
 

easyrider

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Well Jimmy, I'm not after the best deal so the $30 doesn't seem like a bad deal to me considering the convenience. Add in the low cost of pesos this year and it seems like a real bargain, lol. My wife does our banking so she can head down to the bank to swap dollars to pesos before we head to Mexico. Easy peasy !!!

Bill
 
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