Taxi blockade at airport

[mediumone]

And you know what? I'm fine with this. It's a hassle for the taxistas to deal with foreign currency. As long as it's posted and consistent, so people can make an informed decision, I find it hard to argue with whatever exchange rates they want to charge..

Couldn't agree more, and I'll take it a step further: Those using a currency other than MXN, are lucky that it's accepted by anyone, anywhere.

 

[DjDiverDan]

15:1 vs 19:1 is like a 25-30% mark up! They're currency trader/speculators, not taxi drivers!

Hey, it costs them both time and money to exchange the dollars they get for pesos. If you don’t like the exchange rate, you don’t have to use taxis as your cambio - just exchange your dollars somewhere that offers a better exchange rate - like a bank - and pay your taxi driver in pesos! Problem solved!

 

[mediumone]

just exchange your dollars somewhere that offers a better exchange rate - like a bank - and pay your taxi driver in pesos! Problem solved!

Better yet, use an ATM.

 

[ggunn]

I just got back from two weeks on Cozumel. Getting in and out of the airport was no problem.

 

[scubafanatic]

Hey, it costs them both time and money to exchange the dollars they get for pesos. If you don’t like the exchange rate, you don’t have to use taxis as your cambio - just exchange your dollars somewhere that offers a better exchange rate - like a bank - and pay your taxi driver in pesos! Problem solved!

Prob didn't take a PhD in Economics to figure out that solution. But anyway, in poor/under developed countries all over the world, 'hard' currencies like the US dollar or Euro are highly valued and much preferred over the local currencies, giving them US dollars/Euros is a bonus/benefit, not a burden.

 

[BRT]

Prob didn't take a PhD in Economics to figure out that solution. But anyway, in poor/under developed countries all over the world, 'hard' currencies like the US dollar or Euro are highly valued and much preferred over the local currencies, giving them US dollars/Euros is a bonus/benefit, not a burden.

I don't think taxi drivers in Coz see dollars as an advantage.

 

[mediumone]

I don't think taxi drivers in Coz see dollars as an advantage.

They do to the extent that the exchange rate they offer is significantly below market rate.

But to your point and scubafanatic's post; There are few economies remaining whereby a "hard" currency means a thing.

 

[BRT]

They do to the extent that the exchange rate they offer is significantly below market rate.

But to your point and scubafanatic's post; There are few economies remaining whereby a "hard" currency means a thing.

I have had a taxi driver on the other side get really upset with me when I payed in dollars instead of pesos even though I was giving him more actual value.

 

[DjDiverDan]

I don't think taxi drivers in Coz see dollars as an advantage.

Whether a taxi driver view dollars as a benefit or a burden depends upon a lot of factors, some determined by the legal treatment of the currency, some depending on the individual taxi driver’s spending habits. On the legal front, it is my understanding that the Mexican government imposes a tax of foreign currency deposits into Mexican bank accounts; there is a safe harbor amount, but any foreign currency deposits over that threshhold in a month results in a tax on the deposits. Any taxi driver trying to maintain a bank account will want to minimize the number of dollars and Euros he has to deposit, and if he is going to exceed the threshhold for the tax, he needs to give a lower exchange rate to recover what might be lost to the tax. Also, while most tourist businesses on Cozumel will gladly take dollars, there’s no guaranty that other businesses will be so happy; the taxi driver may spend most of his income at small locally owned businesses which deal only or primarily in Pesos, and those businesses will also be subject to the tax on deposits of foreign currency, and may choose to avoid the paperwork by refusing to take anything but Pesos. It’s going to a highly individualized set of preferencesl to determine how much any given taxi driver sees the acceptance of dollars as a benefit or a burden, so each driver can set his exchange rate to reflect those preferences.

 

[Christi]

Prob didn't take a PhD in Economics to figure out that solution. But anyway, in poor/under developed countries all over the world, 'hard' currencies like the US dollar or Euro are highly valued and much preferred over the local currencies, giving them US dollars/Euros is a bonus/benefit, not a burden.

Actually, that’s not 100% correct. It’s getting harder and harder for us to manage the ISD here. We have additional taxes applied for deposits over $1500usd per month and for locals changing at the cambios they lose value and they have to show ID and are limited to how much they can change per month.