Where to buy pesos?

[crosman177]

Welcome. I forget what fee is off top of my head around $6 I think. You save that and get the discount rate at calforex. Just hate getting dinged- just as much as i hate atm service fee and branch fee ontop of that!! Another pet peeve.

[Dean2]

Every time you change from one currency to another you loose on the transaction. For example, today's U.S. rate to buy U.S cash from the bank was 1.4270, or .7077 U.S. per dollar Cdn. So $1,000 Cdn dollars would get you 707.70 U.S.

If sold that U.S. money right back to the bank they would give you 1.3650 or .7326 US. Thus 707.70 U.S. dollars would get you $965.86 Cdn. That is a difference of $35 per thousand Canadian between buying and selling. The Bank and exchange house quite naturally make a spread on the sale and purchase of foreign currency. (The official U.S exchange rate today was 72.33 or 1.3825, so without the commission your $1,000 Cdn would have got you 723.32 U.S.)

Buying US then buying Pesos makes no sense at all. The exchange between the peso and the Cdn dollar is much better than the exchange between the Cdn $ and US $ then into Pesos. $1 Cdn gets you 12.09 pesos today at RBC. The banks do not charge an extra fee to sell you Pesos. The Banks post their exchange rates right on their website, easy enough to call Calforex and other exchange bureaus and check their rates. Interesting that they don't post their rates out in the open.

Purchasing Pesos in Mexico, through an exchange or Bank ATM means you will get a poorer deal. You are selling the Bank a Foreign Currency, Cdn, and just like selling a Cdn bank US dollars in the example above, you get paid less.

All of this may end up being pretty irrelevant depending on how much cash you go through but if you are spending more than $2000 Cdn in pesos the differences start to be noticeable. If you are carrying that much cash make sure to put most of it in the hotel safe. (Safety is the one advantage to withdrawing smaller amounts from a Bank ATM rather than carrying large sums and some people will willingly pay the extra exchange costs.)

For purchases and tips in Mexico, use pesos. It keeps the cost much easier to figure out than paying in U.S. dollars and getting change in Pesos. Plus the kid you tip can pocket pesos, U.S. or Cdn he has to run through the hotel and they take a "handling" fee.

[bobcatguy]

Originally Posted by rocpilefsj

Xcaret I bet!

That is where I saw the night show well worth seeing if it's still showing

[rocpilefsj]

Originally Posted by crosman177

Welcome. I forget what fee is off top of my head around $6 I think. You save that and get the discount rate at calforex. Just hate getting dinged- just as much as i hate atm service fee and branch fee ontop of that!! Another pet peeve.

That is a few extra cerveza's for this guy lol. Thanks for the tip, I will try this out for myself in January.

[Okotokian]

Originally Posted by Bergerboy

Use USD. If ya need some pesos just get them from the cash machine there. This is usually your best bet when travelling.

Why would anyone want to pay exchange rates TWICE? The Canadian and Mexican currencies are both stable. What is the point of changing to USD? I think that's from decades gone by when those in some countries wanted it to guard against hyper-inflation.

[morinj]

The currency exchange in west Edmonton mall, never the casino in the past has been better than most banks. I definately would NOT bring USD as, all your doing is supporting their dollar, and lowering ours. I been to probably dozens states in Mexico and have yet to find a spot that doesn't accept Canadian dollars. Rate right now should be around 12.5 to 1 Canadian USD is around 17 to 1. It's our crashing dollar that needs to be supported!!

[Dean2]

http://www.banxico.org.mx/portal-mer...kets--exc.html

You can check the Mexican exchange rate on this site to know whether buying your Pesos here or there is a better deal. When coming back to Canada, sell surplus pesos in Mexico before you return. You will be much better off. Remember, whichever Bank your exchange service you use in Mexico is going to take a spread on the rate so if the quotes rate hear is 12.4 and the Canadian bank will give you 12.1 Pesos for your dollar you are better off buying in Canada.

If you use ATMs in Mexico be very careful, many have undisclosed fees as high as $45 per transaction on top of a 3-5% exchange commission. Better to go into the bank and check first.

[BPM]

If you're not leaving the resort, take a bunch of 1's and 5's in USD. Great for tips. If you have to take any taxis, excursions or plan to shop off the resort, PESOS!!!

Case in point. A lot of vendors and taxis etc work a 10/1 or 12/1 exchange rate, when it's closer to 17/1!

Taxi guy says it's 200 Pesos or 20 Dollars... Pay the 200 Pesos. 20USD buys you 344pesos.

I know some people on here are filthy rich but I hate giving away free money.

I didn't get what I have by being frivolous.

[Dean2]

http://www.ifly.com/benito-juarez-ai...banks-currency

Actual Airport Kiosks in Mexico

[doetracks]

Great tips, thanks guys.

Heading back to Cabo in Feb. Probably going to pick up more Pesos this time.