Dollar Exchange Rate and Peso Prices

[DjDiverDan]

I've been watching recently as the U.S. Dollar reaches new all-times highs against nearly every currency in the World, and the Peso just keeps taking a beating. Yesterday, per the Bloomberg currency site, the Peso closed at a smidge over 17.935 to the Dollar. As recently as January, 2011, it was trading right at 12 to Dollar, and for almost the entire time (with the exception of 3 very shortlived spikes) until October, 2013, it traded at under 14 to the Dollar. While I can see the benefits to Cozumel's tourist industries, with Mexico so cheap it has got to be attracting more tourists, I can't help but think that this is really hurting many locals. Have many local places started raising their prices posted in Pesos? Has the Taxi Union started agitating to increase the fare schedules? And have places other than the Banks and Cambios, like Hotels, started to change the rates they are offering on exchange?

And, I know that there were still some American tourists out there that kept right on paying for everything in Dollars, which was never a good deal, but paying a Taxi in Dollars when he's exchanging at 10-1 is not outrageous when the official rate is 12-1 or even 12.5-1. But when it gets to nearly 18-1, that's just flushing money down a toilet, and only a drunken cruiser can be that dumb. Is this going to finally force almost all Americans to use Pesos? Or will it induce Mexican vendors - taxi drivers, hotels, restaurants, shops, etc. - to adjust the rates they use up to get closer to reality?

 

[Tunaman68]

I went and got some pesos yesterday for my upcoming trip in March. Last year after Wells Fargo fees I was around 13.5, this year almost 17!! It makes paying dollars for a 70 peso taxi ride with a 10/1 exchange rate just plain dumb at this point.

I usually bring enough pesos for taxis and local eats, but I'm thinking this trip I'll be paying for everything with the monopoly money! I was wondering if this crazy exchange rate allows the hotels and dive ops that work in USD to make 'more' or does it all balance out in the end??

 

[DandyDon]

I went and got some pesos yesterday for my upcoming trip in March. Last year after Wells Fargo fees I was around 13.5, this year almost 17!! It makes paying dollars for a 70 peso taxi ride with a 10/1 exchange rate just plain dumb at this point.

I usually bring enough pesos for taxis and local eats, but I'm thinking this trip I'll be paying for everything with the monopoly money! I was wondering if this crazy exchange rate allows the hotels and dive ops that work in USD to make 'more' or does it all balance out in the end??

Good question. My plane, hotels, and diving are all booked in USD, and those local rates don't go down when the Peso does - including the AIs, nor do airlines lower rates with fuel savings. For taxis, eating out, and other spending - get the Pesos at bank ATMs.

What about the dreaded DM tipping? If you only carry Pesos around, then need to tip 250/2-tank trip...??

I remember one trip less than a decade ago when the Dollar was down, and some were talking about going to 9:1 or less. But then there was the big Peso devaluation of the 1980s - wow!

 

[Reidkon]

US or Pesos, what an agonizing dilemma. Sorry, but not feeling much pity for my American tourist friends.

 

[Basscat]

Dreaded Divemaster tipping? I am happy to tip the Divemaster and crew, they rock! I tend to go with $15 US, as I bring a fair amount of US $, and seem to never have the right denominations of pesos. I get pesos from bank ATM's, and use pesos for most everything else.

 

[Tunaman68]

US or Pesos, what an agonizing dilemma. Sorry, but not feeling much pity for my American tourist friends.

Not sure of the reason for the snarky tone of this response?? We are just having a discussion, not asking for 'pity'.

 

[gopbroek]

Mexico's inflation rate was low last year at 2.14% (per Reuters) and I really have not seen a real large increase in pricing.

 

[cvchief]

US or Pesos, what an agonizing dilemma. Sorry, but not feeling much pity for my American tourist friends.

Not sure of the reason for the snarky tone of this response?? We are just having a discussion, not asking for 'pity'.

That dude is from Canada. The Looney is in the toilet. We are like the guys at the Christmas party discussing our huge bonuses, while poor Reidkon only got a:

 

[fishi]

I've been watching recently as the U.S. Dollar reaches new all-times highs against nearly every currency in the World, and the Peso just keeps taking a beating. Yesterday, per the Bloomberg currency site, the Peso closed at a smidge over 17.935 to the Dollar. As recently as January, 2011, it was trading right at 12 to Dollar, and for almost the entire time (with the exception of 3 very shortlived spikes) until October, 2013, it traded at under 14 to the Dollar. While I can see the benefits to Cozumel's tourist industries, with Mexico so cheap it has got to be attracting more tourists, I can't help but think that this is really hurting many locals. Have many local places started raising their prices posted in Pesos? Has the Taxi Union started agitating to increase the fare schedules? And have places other than the Banks and Cambios, like Hotels, started to change the rates they are offering on exchange?

And, I know that there were still some American tourists out there that kept right on paying for everything in Dollars, which was never a good deal, but paying a Taxi in Dollars when he's exchanging at 10-1 is not outrageous when the official rate is 12-1 or even 12.5-1. But when it gets to nearly 18-1, that's just flushing money down a toilet, and only a drunken cruiser can be that dumb. Is this going to finally force almost all Americans to use Pesos? Or will it induce Mexican vendors - taxi drivers, hotels, restaurants, shops, etc. - to adjust the rates they use up to get closer to reality?

With the fed determined to raise interest rates this year the trend will probably continue.

I didn't notice any price increases this year other than gas. We spent $80 (US) on gas this trip. The increase in fuel has got to be hurting the locals. I would bet electricity is up too. Car insurance was a bit more also.

 

[Lorenzoid]

I've been watching recently as the U.S. Dollar reaches new all-times highs against nearly every currency in the World, and the Peso just keeps taking a beating. . . .

As I listened to this news of an almost 18:1 exchange rate during my commute home on Friday, the first thing I thought was "now is a good time for a trip to Mexico." But it also occurred to me that so much that's directed toward visitors in Cozumel is priced in dollars. I never liked the idea of paying in dollars in a foreign country, and I pay in local currency whenever possible. That's what I have done on my Cozumel trips. At present, I would absolutely refuse to pay for anything in dollars unless they were to revise the dollar amounts correctly, and I can imagine they will be dragging their feet on that. So it sure could make for some awkwardness if places push for payment in dollars. I'd rather visit somewhere that doesn't deal so much in dollars, just to avoid the potential for awkwardness.