Pay in Pesos versus dollars?

[amoses]

In general, parking or otherwise, is it cheaper to use pesos or USD in Cozumel? I was debating whether I should exchange money or not? Any advice? If so, where is the best place to go to get the best exchange rates?

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A ScubaBoard Staff Message...

this thread has been split from another thread discussing parking in the downtown area. Marg, ScubaBoard Senior Moderator

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[cvchief]

Best exchange rate is open a free online Bank of America checking account with a MAC Card. Then go to Santander bank on Ave 10 and use the atm to take out up to 6,000 pesos a crack. Good exchange rate and NO fees or charges of any kind. You can transfer money online to the BOA from your regular account for free in about 2 days.

We tend to use pesos for everything. Sometimes it is a better deal. Most restaurants give the bill both ways, so you can figure it out. We used to, but got bored with the calculator...

And if you stay out late, make sure you know when the lot closes, so your car isnt locked in for the night!

 

[DjDiverDan]

In general, parking or otherwise, is it cheaper to use pesos or USD in Cozumel? I was debating whether I should exchange money or not? Any advice? If so, where is the best place to go to get the best exchange rates?

I don't think that there is a generally true answer to your question. For taxis, it is ALWAYS cheaper (by about 20% or more) to pay in pesos. Many restaurants still use an exchange rate of 10 pesos to the dollar, so for those it is cheaper to pay in pesos. Some restaurants, however, are exchanging at close to, or even above the official exchange rate, so it is cheaper there to pay in dollars. I always exchange $400 or $500 into pesos early in my trip - ALWAYS at a bank (i usually go to Scotia Bank - go to the back of the Plaza, turn North and one block to the end of the Pedestrian Walkway, catty-corner from the OXO where the old Sports Page used to be), which have better exchange rates than the Cambios. I then pay in either dollars or pesos, whichever is cheaper. Any Pesos I have at the end of the trip, I save for my next trip to Cozumel. I have about 550 pesos stashed away now in my dive wallet for my next trip.

 

[amoses]

I don't think that there is a generally true answer to your question. For taxis, it is ALWAYS cheaper (by about 20% or more) to pay in pesos. Many restaurants still use an exchange rate of 10 pesos to the dollar, so for those it is cheaper to pay in pesos. Some restaurants, however, are exchanging at close to, or even above the official exchange rate, so it is cheaper there to pay in dollars. I always exchange $400 or $500 into pesos early in my trip - ALWAYS at a bank (i usually go to Scotia Bank - go to the back of the Plaza, turn North and one block to the end of the Pedestrian Walkway, catty-corner from the OXO where the old Sports Page used to be), which have better exchange rates than the Cambios. I then pay in either dollars or pesos, whichever is cheaper.

Thanks for this great advice.

Any Pesos I have at the end of the trip, I save for my next trip to Cozumel. I have about 550 pesos stashed away now in my dive wallet for my next trip.

You are not worried about the exchange rate going crazy before you go back? If it goes to 20 to 1 by the time you return then you just lost half your money. Maybe it doesn't fluctuate that much? I know years ago the Mexican peso used to fluctuate greatly from year to year, month to month, and even sometimes from day to day. Is it more stable now?

 

[cvchief]

You are not worried about the exchange rate going crazy before you go back? If it goes to 20 to 1 by the time you return then you just lost half your money. Maybe it doesn't fluctuate that much? I know years ago the Mexican peso used to fluctuate greatly from year to year, month to month, and even sometimes from day to day. Is it more stable now?

Well he could lose part of that, but 550 is only about $44US. It hasn't fluctuated that much. On the other hand, if the exchange rate goes the other way, he might be ahead, but it will only be a few bucks. I have withdrawn extra when it was up some to save for the next trip.

At restaurants of course you can get on the free wifi, check the current rate, divide the peso on the bill by the dollars and see which is a better deal. Like I said though, I got bored with it and would rather just use their money in their country.

 

[DjDiverDan]

Most restaurants will tell you the exchange rate they are using, if it isn't shown right on the bill. You don't need a calculator, just remember the exchange rate you got when you exchanged dollars at the Bank. If the restaurant's exchange rate is lower, you are better off paying pesos. If it's higher, pay in dollars. For example, on my last trip in December, I think I got 12.88 pesos to the Dollar, so if the exchange rate on the bill was 13 or higher, I paid Dollars. If it was 12.75 or lower, I paid Pesos. Anything between 12.75 and 13 and the difference is so minimal as to not make any difference.

 

[mstevens]

---------- Post added February 17th, 2013 at 03:05 PM ----------

You are not worried about the exchange rate going crazy before you go back?

Nope, not in the slightest. Mexico is one of the US's biggest trading partners, so dollars and pesos are flying back and forth by the billions and that tends to flatten out huge fluctuations. Over the past two years, the lowest midpoint rate was 11.56 and the highest was 14.13. Think "12 or 13 to 1" and you're usually not going to be off by much.

it goes to 20 to 1 by the time you return then you just lost half your money.

Not gonna happen, but if that were to happen I'd be thrilled and buy thousands of dollars worth of pesos and open up a local account. I think the highest effective rate I've ever been able to make use of has been about 15 and the lowest about 12. We need pesos when we hit the island for the shuttle van etc. If for some reason we have an unusually large amount left at the end of a stay we'll stash it in the safe, but for the past two months the only cash of any sort I've had in my wallet has been 600 pesos. Doesn't go very far in Keene, NH...

Honestly, like cvchief we've kept track over numerous trips and have concluded that it's quite rare that we come out ahead using dollars and extremely common that pesos are better and that we have better things to do than figuring it out all the time.

Keep in mind that even though Cozumel has a fairly thriving dollar economy, it's Mexico so for businesses or residents to make use of dollars they're eventually going to need to exchange them for pesos. They lose a bit in the process every time. The only time we pay in dollars is when it's specifically requested (for example, a divemaster friend needed dollars anyway to order some stuff from the US).

For more general money info, have a look at this page.

 

[cvchief]

Most restaurants will tell you the exchange rate they are using, if it isn't shown right on the bill. You don't need a calculator, just remember the exchange rate you got when you exchanged dollars at the Bank. If the restaurant's exchange rate is lower, you are better off paying pesos. If it's higher, pay in dollars. For example, on my last trip in December, I think I got 12.88 pesos to the Dollar, so if the exchange rate on the bill was 13 or higher, I paid Dollars. If it was 12.75 or lower, I paid Pesos. Anything between 12.75 and 13 and the difference is so minimal as to not make any difference.

Which also illustrates my point. You are changing which currency you use for 0.25 peso per dollar. That is like 2 buck difference per hundred bucks spent.

Of course if you get the pesos at 12.88 and the exchange rate goes up during your vacation, you might get stuck with all those peso. Unless you use the current rate as opposed to when you got them. I got 12.64 on the 13th, but I got 12.68 on the 10th and the 9th.

Hence, the point MStevens made, most of time pesos are the best or darn close.

 

[amoses]

Thank you. This has been really good information for me. I had planned on using dollars to pay for everything. I guess I will get pesos instead and use them most of the time. What about diving costs? tipping DM's? Isis? Use pesos on all of it?

 

[DjDiverDan]

I always use Dollars to pay for diving and tipping the divemasters. But I also almost always get reservations ahead of time for a 4 or 5 day dive package, which usually requires reservations and a deposit up front. If I happen to overtip DMs by tipping in Dollars, I usually give $15-$20 a day for a two-tank dive, that's one cost I am more than happy to live with. Too many DMs do a great job and get stiffed by Divers who are still living in the 1980s and think $5 for a two-tank dive is plenty.