Note: This information was accurate when it was published, but can change without notice. Please be sure to confirm all rates and details directly with the companies in question before planning your trip.
Frommer's Mexico, 17th Edition Author: David Baird Pub Date: August 23, 2011
Frommer's lists exact prices in the local currency. However, rates fluctuate, so before departing, consult a currency exchange website such as www.oanda.com/convert/classic to check up-to-the-minute rates.
Overall, Mexico is considerably cheaper than most U.S. and European destinations, although prices vary significantly depending on the specific location. The most expensive destinations are those with the largest number of foreign visitors, such as Cancún and Los Cabos. The least expensive are those off the beaten path and in small rural villages. In the major cities, such as the capital, prices vary greatly depending on the neighborhood. As you might imagine, tourist zones tend to be much more expensive than local areas.
The currency in Mexico is the peso. Paper currency comes in denominations of 20, 50, 100, 200, and 500 pesos. Coins come in denominations of 1, 2, 5, 10, and 20 pesos, and 20 and 50 centavos (100 centavos = 1 peso). The current exchange rate for the U.S. dollar, and the one used in this book, is 13 pesos; at that rate, an item that costs 13 pesos would be equivalent to US$1.
Many establishments that deal with tourists, especially in coastal resort areas, quote prices in dollars. To avoid confusion, they use the abbreviations "Dlls." for dollars and "M.N." (moneda nacional, or national currency) for pesos. Note: Establishments that quote their prices primarily in U.S. dollars are listed in this guide with U.S. dollars.
Getting change is a problem. Small-denomination bills and coins are hard to come by, so start collecting them early in your trip. Shopkeepers and taxi drivers everywhere always seem to be out of change and small bills; that's doubly true in markets. There seems to be an expectation that the customer should provide appropriate change, rather than the other way around.
Don't forget to have enough pesos to carry you over a weekend or Mexican holiday, when banks are closed. In general, avoid carrying the U.S. $100 bill, the bill most commonly counterfeited in Mexico and, therefore, the most difficult to exchange, especially in smaller towns. Because small bills and coins in pesos are hard to come by in Mexico, the $1 bill is very useful for tipping. Note: A tip of U.S. coins, which cannot be exchanged into Mexican currency, is of no value to the service provider.
The bottom line on exchanging money: Ask first, and shop around. Banks generally pay the top rates.
Casas de cambio (exchange houses) are generally more convenient than banks because they have more locations and longer hours; the rate of exchange may be the same as at a bank or slightly lower. Before leaving a bank or exchange-house window, count your change in front of the teller before the next client steps up.
Large airports have currency-exchange counters that often stay open whenever flights are operating. Though convenient, they generally do not offer the most favorable rates.
A hotel's exchange desk commonly pays less favorable rates than banks; however, when the currency is in a state of flux, higher-priced hotels are known to pay higher rates than banks, in an effort to attract dollars. Note: In almost all cases, you receive a better rate by changing money first, then paying.
Money Matters—The universal currency sign ($) is used to indicate pesos in Mexico. The use of this symbol in this guide, however, denotes U.S. currency.
A Few Words about Prices—Most hotels in Mexico except places that receive little foreign tourism quote prices in U.S. dollars. Thus, currency fluctuations are unlikely to affect the prices most hotels charge.
Mexico has a value-added tax of 15% (Impuesto de Valor Agregado, or IVA; pronounced "ee-bah") on most everything, including restaurant meals, bus tickets, and souvenirs. (Exceptions are Cancún, Cozumel, and Los Cabos, where the IVA is 10%; as ports of entry, they receive a break on taxes.) Hotels charge the usual 15% IVA, plus a locally administered bed tax of 2% (in most areas), for a total of 17%. In Cancún, Los Cabos, and Cozumel, hotels charge the 10% IVA plus 2% room tax. The prices quoted by hotels and restaurants do not necessarily include IVA. You may find that upper-end properties (three or more stars) quote prices without IVA included, while lower-priced hotels include IVA. Ask to see a printed price sheet and ask if the tax is included.
Banks in Mexico are rapidly expanding and improving services. They tend to be open weekdays from 9am until 5pm, and often for at least a half-day on Saturday. In larger resorts and cities, they can generally accommodate the exchange of dollars (which used to stop at noon) anytime during business hours. Some, but not all, banks charge a 1% fee to exchange traveler's checks. But you can pay for most purchases directly with traveler's checks at the establishment's stated exchange rate. Don't even bother with personal checks drawn on a U.S. bank—the bank will wait for your check to clear, which can take weeks, before giving you your money.
Travelers to Mexico can easily withdraw money from ATMs in most major cities and resort areas. The U.S. Department of State recommends caution when you're using ATMs in Mexico, stating that they should be used only during business hours and in large protected facilities, but this pertains primarily to Mexico City, where crime remains a significant problem. In most resorts in Mexico, the use of ATMs is perfectly safe—just use the same precautions you would at any ATM.
The exchange rate is generally more favorable than at casas de cambio. Most machines offer Spanish/English menus and dispense pesos, but some offer the option of withdrawing dollars.
In Mexico, Visa, MasterCard, and American Express are the most accepted cards. You'll be able to charge most hotel, restaurant, and store purchases, as well as almost all airline tickets, on your credit card. Pemex gas stations have begun to accept credit card purchases for gasoline, though this option may not be available everywhere and often not at night—check before you pump. You can get cash advances of several hundred dollars on your card, but there may be a wait of 20 minutes to 2 hours. Charges will be made in pesos, then converted into dollars by the bank issuing the credit card. Generally, you receive the favorable bank rate when paying by credit card. However, be aware that some establishments in Mexico add a 5% to 7% surcharge when you pay with a credit card. This is especially true when using American Express. Many times, advertised discounts will not apply if you pay with a credit card.
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