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Buying Pesos Before Trip

Quimby4

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Hello Tuggers,

I have seen a few posts about the fact that the Peso to Dollar is looking good.
21 - 1, maybe was 14 - 1. ??
Sorry, I am not very educated in this area.

So my question is, should I buy/exchange some money soon before heading to Mexico in June?
We generally try to put most expenses on Credit Card with no foreign transaction fees but use cash for tips, transportation and small purchases.

Do I just for to BofA or Chase to do this? Im In Cali.
I appreciate any suggestions.
 

Passepartout

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The peso is losing value to the dollar. I certainly wouldn't buy any 6 months in advance of need. In fact I wouldn't buy any at all. I'd hit the BANK ATM near the bag claim at the airport when you land in Mexico. It will give the best exchange you can get and for a charge of about 1%. If you have a BofA debit card, I think they have an agreement with Santander so no bank charges. Yes, the best use is credit card for purchases, pesos for meals, tips, taxis, small purchases. When you cash out at your resort, use up your leftover pesos and settle the balance with the credit card.

Incidentally, today's rate is about 20.8 pesos/USD

Jim
 

dioxide45

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The peso is losing value to the dollar.
The peso has actually gained against the dollar the last couple of weeks. One can never really predict the path of the currency against the dollar. It could go up, it could go down. I don't think it hurts to have some cash on hand when you land. If one wants to lock in their prices based on today's rates, it may be a good idea to pickup pesos. If the Peso gets better, then you come out ahead. If the value of the Peso drops, then you lose out.
 

Passepartout

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The peso has actually gained against the dollar the last couple of weeks. One can never really predict the path of the currency against the dollar. It could go up, it could go down.

Yeah, I saw that. Here's today's oanda converter that shows the peso at almost 22- 10 days ago (anything happen then?) :)
https://www.oanda.com/currency/converter/
 

Phydeaux

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The peso is losing value to the dollar. I certainly wouldn't buy any 6 months in advance of need. In fact I wouldn't buy any at all. I'd hit the BANK ATM near the bag claim at the airport when you land in Mexico. It will give the best exchange you can get and for a charge of about 1%. If you have a BofA debit card, I think they have an agreement with Santander so no bank charges. Yes, the best use is credit card for purchases, pesos for meals, tips, taxis, small purchases. When you cash out at your resort, use up your leftover pesos and settle the balance with the credit card.

Incidentally, today's rate is about 20.8 pesos/USD

Jim


Yikes, really??

First, how in the Wide Wide world of Sports do you happen to know the value of the peso "when you land in Mexico"? And you actually believe the best exchange is at the airport in Mexico????

Wow.

Does this help?





Screen Shot 2017-02-01 at 8.06.20 PM.png
 

Passepartout

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Showing one day's movement doesn't show anything. The oanda chart show a month. At best- as you point out- it's a gamble. Some you win, some you lose, but if you buy- at retail from your neighborhood bank branch- it's virtually guaranteed that the bank wins, and you lose.
 

Ty1on

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Yikes, really??

First, how in the Wide Wide world of Sports do you happen to know the value of the peso "when you land in Mexico"? And you actually believe the best exchange is at the airport in Mexico????

Wow.

Does this help?





View attachment 3228

I find it humorous that you ask your question and then immediately post a rate chart that can be accessed from a smartphone, as well as the simple current exchange rate.
 

dioxide45

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Many debit cards and banks have a 3% foreign transaction fee along with any ATM charges. While someone may be able to get them waived, I am not going to go out and sign up for a bank account with a specific bank to save ATM fees for a trip. In the end, getting cash in advance probably isn't much more than getting it at the ATM. It doesn't matter how or where you get it, you are always going to get the short end of the stick.
 

Ken555

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I was in Mexico last month and simply used a credit card and US$ everywhere... most stores offered 20:1 but some were as low as 17:1, though of course that will change over time. There was almost no advantage in having local currency. Of course, if you think the Peso will gain strength then buy some now.


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pedro47

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Personally, I liked to travel with a little peso just in case ., I encounter a dishonor vendor, that way I will not be overcharge.
Currency rates changes daily up and down. The American dollar is except everywhere.
 
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Phydeaux

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Showing one day's movement doesn't show anything. The oanda chart show a month. At best- as you point out- it's a gamble. Some you win, some you lose, but if you buy- at retail from your neighborhood bank branch- it's virtually guaranteed that the bank wins, and you lose.


Better take a second look at the chart, it's not "one day". ;)

Forgive pointing out the obvious, but since the exchange rates are constatnlty changing, it's always a gamble when to buy foreign currency. That's why your suggestion "certainly wouldn't buy any 6 months in advance of need" is peculiar. What is the rate going to be 6 months from now? Do you know? It's 20.58 at this time - let's come back in 6 months and see what the rate is, shall we?

Second, I thought it was common knowledge that the airport is one of the worst places to purchase pesos, and I advise others to refrain from doing so. Finally, can you please explain who can provide me a better exchange rate than my local bank? Yesterday they would offer 19.7 p to 1 USD. Yes, the market rate was aprox. 20.7, and you nor any tourist will ever buy at the market rate. So, please do tell, who can offer me a better rate than my local bank? Further, I wouldn't dream of landing in a foreign country for a 2 week stay only to rely on a ATM for my vacation cash, nor do I use my cc at just any business. Friends had their card pirated and subsequently locked down while vacationing in the Yucatan. They thanked me for suggesting they purchase pesos from their local bank prior to departure. If they hadn't, they would have run out of cash while on their vacation. Not fun.

Btw, anyone using their foreign currency (USD) in Mexico is overpaying for every transaction they make. This is the instance where the locals will always gain, and the tourist will always lose because the merchant selects the exchange rate, not the market.
 
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dioxide45

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I was in Mexico last month and simply used a credit card and US$ everywhere... most stores offered 20:1 but some were as low as 17:1, though of course that will change over time. There was almost no advantage in having local currency. Of course, if you think the Peso will gain strength then buy some now.


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You cite 17-1 and 20-1, but those are if you are using USD at local merchants. In this case there is definitely an advantage to having local currency to pay for goods over dollars. Also, not every merchant accepts credit cards, so paying with cash is the only option and using pesos is almost always better than USD.
 
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For us, it is just about convenience;
- We use our credit card (no foreign exchange fees) on everything we can
- When we can't, we use pesos - more convenient (and cheaper) than continually doing conversions.
- We always have enough pesos from previous trip for tips to resort (or just use dollars).
- we then go to our lobby and get pesos from bank machine there - or closest location on path - will never go seeking lowest rate ATM machine / not interested in airport ATM as goal is visa / luggage / customs / maze / van to resort as easily as possible.

Mike
 

bobpark56

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<snip> I thought it was common knowledge that the airport is one of the worst places to purchase pesos, and I advise others to refrain from doing so. <snip>
The red Santander machine at the Cancun Aeropuerto is a fair exchanger...when it does not run out of cash. Expect to be charged about $1.50 US if you use it. It was out of cash the last 2 times I tried it. Fortunately we had a small stash of pesos from our last visit to Mexico. The other ATMs (non-bank) at the airport do charge exorbitant fees. Never use an airport money exchanger, if you can help it.
 

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Showing one day's movement doesn't show anything. The oanda chart show a month. At best- as you point out- it's a gamble. Some you win, some you lose, but if you buy- at retail from your neighborhood bank branch- it's virtually guaranteed that the bank wins, and you lose.

We already went through this on the earlier post, link provided above. You didn't respond in that post either. Please, this time, provide just one source that can provide a better exchange rate than my local bank. If you can't, would you please for the love of Pete stop suggesting banks should not be used to purchase pesos?
 

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We already went through this on the earlier post, link provided above. You didn't respond in that post either. Please, this time, provide just one source that can provide a better exchange rate than my local bank. If you can't, would you please for the love of Pete stop suggesting banks should not be used to purchase pesos?
How can one provide ANY rate that is potentially better than YOUR local bank when you don't publish the rate- AND FEES- that your local bank charges?

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malyons

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Better take a second look at the chart, it's not "one day". ;)

Forgive pointing out the obvious, but since the exchange rates are constatnlty changing, it's always a gamble when to buy foreign currency. That's why your suggestion "certainly wouldn't buy any 6 months in advance of need" is peculiar. What is the rate going to be 6 months from now? Do you know? It's 20.58 at this time - let's come back in 6 months and see what the rate is, shall we?

Second, I thought it was common knowledge that the airport is one of the worst places to purchase pesos, and I advise others to refrain from doing so. Finally, can you please explain who can provide me a better exchange rate than my local bank? Yesterday they would offer 19.7 p to 1 USD. Yes, the market rate was aprox. 20.9, and you nor any tourist will ever buy at the market rate. So, please do tell, who can offer me a better rate than my local bank? Further, I wouldn't dream of landing in a foreign country for a 2 week stay only to rely on a ATM for my vacation cash, nor do I use my cc at just any business. Friends had their card pirated and subsequently locked down while vacationing in the Yucatan.

Btw, anyone using their foreign currency (USD) in Mexico is overpaying for every transaction they make. This is the instance where the locals will always gain, and the tourist will always lose because the merchant selects the exchange rate, not the market.

Not arguing with your logic here regarding having some pesos upon arrival if that makes you more comfortable, but wanted to point out that if you're buying at 19.7 when the market was 20.9, you are paying a 5.7% price for that conversion. Those who say to use a local bank are doing so because when you do that you do actually get a true market rate for your exchange, and then pay a conversion fee on top of that, which is usually less than 5.7%, although every bank is different. I think my bank charges 3% for foreign conversion, so I save by just using a local ATM upon arrival. This is different than "buying" pesos at the currency counter in the mall, where you certainly get a worse deal than the other alternatives mentioned.

Note it's pretty widely recommended that you find an actual bank to get pesos out, and don't use a more public ATM with no security as your chances of having your card info stolen are in theory less that way.
 

pittle

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We always use the bank ATM's in Mexico. We do tend to make sure we have a few hundred in Pesos when we leave since we travel to Mexico regularly. It is nice to have Pesos for the taxi, first meal or two, and maybe a stop at the closest OXXO on your first day. :)
 

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How can one provide ANY rate that is potentially better than YOUR local bank when you don't publish the rate- AND FEES- that your local bank charges?

How can you suggest "the bank wins, you lose" when you don't know the rates offered by the bank? Btw, I already provided the rate in my post. Look again. Now will you tell us who offers a better exchange rate? Better, where exactly do you conduct your currency exchanges, or purchase pesos?

My bank waives their $10 fee.



hole.jpg
 
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Passepartout

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Better, where exactly do you conduct your currency exchanges, or purchase pesos?
I outlined it EXACTLY in post #3. Now as to why not to buy ahead at you local bank. (1) they will charge you a fee on top of the exchange. (2) the rate WILL change. It may be in your favor, or not. (3) something unforeseen may occur that causes you to cancel a trip- why be stuck with foreign currency? Case in point. I have a stash of pesos (and Euros) to use for incidentals the first day on arrival until I can hit an ATM or bank. Sudden, unplanned-for illness hit DW last year causing us to cancel a cruise and 2 timeshare trips. The trips were (mostly) insured. But the stash of pesos were acquired for (iirc) 15ish per dollar. That's a cost of over 25% to me compared to newly acquired pesos. I suppose it could have gone the other way, but it didn't.

Jim
 

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I outlined it EXACTLY in post #3. Now as to why not to buy ahead at you local bank. (1) they will charge you a fee on top of the exchange. (2) the rate WILL change. It may be in your favor, or not. (3) something unforeseen may occur that causes you to cancel a trip- why be stuck with foreign currency? Case in point. I have a stash of pesos (and Euros) to use for incidentals the first day on arrival until I can hit an ATM or bank. Sudden, unplanned-for illness hit DW last year causing us to cancel a cruise and 2 timeshare trips. The trips were (mostly) insured. But the stash of pesos were acquired for (iirc) 15ish per dollar. That's a cost of over 25% to me compared to newly acquired pesos. I suppose it could have gone the other way, but it didn't.

Jim


So, you do purchase pesos from the ATM in Mexico?? Please do explain your post on Jan. 4 to a fellow Tugger here:

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.
Passepartout

--------------------------------------------------------------------------

I explained, my bank waived the $10 fee. So they will NOT charge me on top of the exchange. I can't speak for you or other's bank.

Since you wrote this, you're obviously aware of less than optimal exchange rate and the fees, and inferred to Bill that using ATM's in Mexico aren't the best method to purchase pesos. Or did I miss something?

Jim, help me to understand this discrepancy from only a few days ago.

Last, as already covered, having left over pesos are only a ding if purchased at a poor exchange rate, and you don't plan on returning. Purchased at a favorable rate as compared to rate of your planned return is a win win.
 
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Passepartout

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If you see discrepancy, you're imagining it. I'm through pointing out the obvious to you if you are too dense to see it. The thread was not EVER about you anyway.
 

Ken555

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You cite 17-1 and 20-1, but those are if you are using USD at local merchants. In this case there is definitely an advantage to having local currency to pay for goods over Pesos. Also, not every merchant accepts credit cards, so paying with cash is the only option and using pesos is almost always better than USD.

I didn't say there wasn't a financial advantage to acquiring Pesos. I said there was "almost no advantage". The key question, which you did not ask, was how much did I spend in cash? The answer might surprise you...not much.

I considered an ATM for even just $100 in Pesos, but decided against it when it became clear the financial benefit from doing so would only be a few dollars at most. For obvious reasons, which I should not have to mention, if you're spending a lot then the benefit increases with every dollar to convert to local currency at the least expensive method.

We paid in USD at several vendors and didn't feel their offered rate was out of line. All but one offered 20:1 and on that day the conversion was only slightly higher based on the mid-market exchange rates from the interbank market, which anyone can see by installing the XE app or going to xe.com.

A friend needed some medicine so we checked prices at several pharmacies one day as we walked around. Ironically, the very best price was not at the pharmacy offering the best conversion but rather the pharmacy that offered the best price in pesos...as you would expect, yet most start off by simply stating the price in dollars (before we even indicated how we would pay, and she had some pesos from a previous trip).

I'm fairly well traveled and have no difficulty using or obtaining foreign currency. Bank ATMs are, in my view, the absolute best option in obtaining local currency in any country. As others have said, and I've posted in similar threads over the years here, it's important to know what your bank will charge you for use of a foreign ATM so it doesn't come as a surprise - sometimes this knowledge will influence how much local currency to get at one time.


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If you see discrepancy, you're imagining it. I'm through pointing out the obvious to you if you are too dense to see it. The thread was not EVER about you anyway.


Now now, no need for a personal attack. Not that I can't take it from you ;)

Actually, the discrepancy is in bold, above for you and everyone else to see.

Discrepancy is probably the wrong term. How does contradiction sound.
 
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