BajaNomad - No more dollars in Baja

No more dollars in Baja

sanquintinsince73 - 9-9-2010 at 12:24 PM

Anyone know what the scoop is on the governments plan to no longer allow American money in Baja and other border states? I heard on Tijuana's canal 12 that the toll road from TJ to Ensenada will start accepting only Mexican money very soon. Many Mexican empresarios are indicating that this will surely be the coup de grace for Baja's economy.

DENNIS - 9-9-2010 at 12:27 PM

I think a bit more research is in order.

Bajatripper - 9-9-2010 at 12:33 PM

This certainly doesn't make much sense, even in the best of times. During the current financial downturn, my guess is that US dollars, even if pulled out of a dark and smelly place in front of the payee, would be readily accepted anywhere in Baja, the border states, or Timbuktoo.

Bajahowodd - 9-9-2010 at 12:43 PM

This story might provide a partial answer. As Bajatripper notes, it will probably be ok to spend dollars in most places. But as noted in this article, busy facilities that take in large amounts of dollars won't be able to deposit them due to the Federal max recently implemented.

http://www.kpbs.org/news/2010/sep/03/tijuana-airport-no-long...

gnukid - 9-9-2010 at 12:51 PM

Quote:

Originally posted by sanquintinsince73
Anyone know what the scoop is on the governments plan to no longer allow American money in Baja and other border states? I heard on Tijuana's canal 12 that the toll road from TJ to Ensenada will start accepting only Mexican money very soon. Many Mexican empresarios are indicating that this will surely be the coup de grace for Baja's economy.

It was announced in Mexico earlier this week that the plan to implement restrictions on dollar deposits is suspended and instead acceptance of dollars in a managed banking system is a better way to end black market money laundering and help the economy. Doh!

My personal opinion is that the change in thought comes on the back of many successful recent arrests a-la-Barbie.

Here is a reference to one version of the report earlier this week.

http://www.afntijuana.info/afn/?p=12829

MEXICALI BC 7 de septiembre de 2010 (AFN).- La decisión del gobierno federal de postergar la entrada en vigencia del programa de restricción en los depósitos en dólares estadunidenses fue confirmada este martes por el gobernador del Estado.

José Guadalupe Osuna Millán dijo en esta capital que la determinación de la Secretaría de Hacienda, se tomó a petición de “los diez diputados (panistas) federales”, los empresarios y el gobierno estatal.

En rueda de prensa, el mandatario estatal señaló que los empresarios y comerciantes no tienen de que preocuparse porque se logró ampliar el tope de cuatro mil a siete mil dólares por mes, y les recomendó a quienes superen esos ingresos, abrir más cuentas en otros bancos.

La solución expuesta por Osuna Millán estriba en la posibilidad de aperturar nuevas cuentas en las siete instituciones que hay en el estado.
Analistas económicos del sector privado estimaron por su parte, que la propuesta de las “siete cuentas bancarias del gobernador”, no es la solución e incluso levantaría más sospechas.

“Sería como decirles a los empresarios que abran cuentas para engañar a las autoridades”, estableció Vicente Osuna, analista de un banco local.
Dijo que esto les permitiría manejar hasta 56 mil dólares mensuales con lo que se soluciona en parte el problema, por lo menos hasta junio del año próximo.

-----bad google translation follows

The federal government's decision to postpone the entry into
restriction program term deposits in
U.S. dollars was confirmed Tuesday by the
Governor of the State.

José Guadalupe Osuna Millán said in this capital that
determination of the Ministry of Finance, took upon request
of "the ten deputies (PAN) Federal, employers and
state government.

At a news conference, Bush noted that state
business people do not have to worry about
succeeded in broadening the top of 4000-7000 dollars
months, and recommended to those who exceed that income, open more
accounts at other banks.

The solution put forward by Osuna Millán lies in the possibility
Opening new accounts in the seven institutions that are
in the state.

Economic analysts estimated the private sector for its part,
that the proposal of "seven bank accounts
governor, "is not the solution and even more lift
suspicion.

"It would be like telling them to employers who open accounts
mislead the authorities, "Vincent established Osuna, analyst
a local bank.

He said this would enable them to handle up to $ 56,000
monthly as part of the problem solved, so
least until June next year.

oxxo - 9-9-2010 at 12:54 PM

I had a talk with my account representative, Suzette, at Bancomer just last week. This only applies to cash dollars. I can write a check in dollars of any amount and deposit into my Bancomer peso account. Then I can withdraw any amount from my account in pesos. I can also use my US debit card to withdraw pesos from any Mexican ATM machine. I use my Bank of America debit card to withdraw pesos from any Santander ATM and there is no transaction fee. Also, Union Bank of California has just informed me that I can use their debit card at any ATM in the world and they will rebate any transaction fees I might accrue.

So far, the new governement regulations have not had any impact on us.

Buying with dollars

lookingandbuying - 9-9-2010 at 12:58 PM

Does not make sense that the could EVER get rid of the dollar economy especially in the border areas.

The use of dollars is a natural event that happens as a result of the seller making it convenient for the buyer to buy their goods. While the government may be able to make you pay in Pesos at the toll both or other government offices they will never be able to stop the free flow of dollars that helps people conduct their business transactions.

That along with people wanting to store their value in a more stable currency will make this all go away. Don't worry I am sure you will always be able to exchange a twenty dollar bill for your Pacifico's :lol:

DENNIS - 9-9-2010 at 01:13 PM

I wonder if this means I won't be able to pay my lease in dollars.
I doubt that.

Bob and Susan - 9-9-2010 at 01:23 PM

Quote:

Originally posted by lookingandbuying
Don't worry I am sure you will always be able to exchange a twenty dollar bill for your Pacifico's :lol:

the "pacifico boys" just gave me a new bottle opener

thanks "pacifico boys"

pacifopener.jpg - 43kB

motoged - 9-9-2010 at 09:30 PM

Do U.S. businesses, tolls, etc accept pesos....or do they expect to be paid in the currency of the country?

I understand the value and convenience of using US dollars in some foreign countries....but, really folks, why don't you use the currency of the country you are in....even learn a bit of the language used in the country you are visiting????

Just sayin' :light:

Marc - 9-9-2010 at 09:51 PM

I only use Pesos and I speak darn good Español. Una mas cervesa porfavor. Howz that?

BajaBruno - 9-9-2010 at 11:41 PM

"No more dollars in Baja"? Well, join the crowd--there aren't many floating around north of the border, either.

wessongroup - 9-9-2010 at 11:47 PM

Quote:

Originally posted by motoged
Do U.S. businesses, tolls, etc accept pesos....or do they expect to be paid in the currency of the country?

I understand the value and convenience of using US dollars in some foreign countries....but, really folks, why don't you use the currency of the country you are in....even learn a bit of the language used in the country you are visiting????

Just sayin' :light:

I pay in what ever they want... we used chickens too... broasted from Calimex.. no complaints so far.. we just give them to the guys that work around here, just for cuz we knew they would really like it .... or I should say my wife did ...

The guys that work around jaws dropped, she went out to where they were working and gave them three whole broasted chickens... don't think they saw that one before.... plus some hot tortillas ... the guys are as old and messed up as me... do the weed work and general clean up around the camp and are nice men...

I don't fish anymore... soooooooooo

[Edited on 9-10-2010 by wessongroup]

[Edited on 9-10-2010 by wessongroup]

Woooosh - 9-10-2010 at 08:15 AM

Quote:

Originally posted by wessongroup

Quote:

I like that approach a lot. Money isn't everything and everyone enjoys eating something fresh, good and different. During construction of our house we came down once a week with a cooler of fruits, sandwiches and cold sodas for the workers while we talked with the builder. Maybe that's why it took two years, but we sure got a nice house out of it.

But back on topic- if they do require pesos to pay for the Toll road from TJ to Rosarito and points south, you can bet there will be a bunch of new currency exchange casitas 100 feet away with horrible rates.

[Edited on 9-10-2010 by Woooosh]

David K - 9-10-2010 at 09:21 AM

I thought Mexico wanted MORE dollars to come south!???

Another dumb move by government to hurt small business...

Charging for tourist cards (2000), not controlling drug cartels (2006), now not accepting dollars (2010)... and tourism keeps dropping.

Hook - 9-10-2010 at 11:01 AM

Quote:

Originally posted by David K
not controlling drug cartels (2006),

Well, I think they are doing an admirable job, given their recent captures. Yeah. blood is flowing but it's almost all from the bad guys.

They're apparently doing a better job than we are at controlling the consumption end.

Woooosh - 9-10-2010 at 12:04 PM

Quote:

Originally posted by Hook

Quote:

Originally posted by David K
not controlling drug cartels (2006),

Is there even an effort being made to control consumption? Lately more effort has been put into controlling the breeding beast that is medical pot dispensaries- which are getting robbed by gangs left and right lately.

Bob and Susan - 9-10-2010 at 02:26 PM

the toll booths were taking dollars yesterday

the exchange at the border today is 12.582

Juanita - 9-10-2010 at 04:27 PM

My Bancomer in Santa Rosalia will accept dollar deposits up to the value of $15,000 pesos each month, without charging the small penalty fee. This hasn't changed for quite a while.

woody with a view - 9-10-2010 at 06:39 PM

Quote:

I have used pesos at a few taco shops here in San Diego

dont tell anyone, but there is a mariscos/taco truck at appletree market in OB that takes leftover pesos...... :light:

irenemm - 9-10-2010 at 09:02 PM

we were informed by one of our suppliers that our invoice will still be in dollars but they will not take dollars starting next week.
we will always take dollars. even if it is illegal. many businesses will. but some are not. I don't know about Costco did not ask them yesterday.
we will not give change in dollars as we will not have the smaller change.
this is another genius thing the Mexican government came up with.
we have several lots we have sold and our contracts on in dollars we will take dollars. but it is gonna be a big mess just like it was when they did this back in the 80's

gnukid - 9-10-2010 at 09:14 PM

It was reported that a meeting of governors and the president had concluded with a postponement of the plan to limits to dollar deposits, which concluded would only cause people to circumvent limits with more accounts and encourage a black market.

Who knows people might not be getting the message, I could be reading the articles incorrectly and apparently so might others.

sanquintinsince73 - 9-11-2010 at 12:11 PM

Quote:

Originally posted by gnukid
It was reported that a meeting of governors and the president had concluded with a postponement of the plan to limits to dollar deposits, which concluded would only cause people to circumvent limits with more accounts and encourage a black market.

Who knows people might not be getting the message, I could be reading the articles incorrectly and apparently so might others.

I don't know what to make of this. I watch canal 12 from TJ every night and business people are complaining that the government is saying one thing while signing laws that indicate another. I have alot of Mexican business owners as neighbors and they are even more confused than me. Some tell me that they've been told that dolares will not be accepted at all, and most others simply can't figure it out. :no:

sanquintinsince73 - 9-11-2010 at 12:13 PM

Quote:

Originally posted by irenemm
we were informed by one of our suppliers that our invoice will still be in dollars but they will not take dollars starting next week.
we will always take dollars. even if it is illegal. many businesses will. but some are not. I don't know about Costco did not ask them yesterday.
we will not give change in dollars as we will not have the smaller change.
this is another genius thing the Mexican government came up with.
we have several lots we have sold and our contracts on in dollars we will take dollars. but it is gonna be a big mess just like it was when they did this back in the 80's

Very confusing, eh?? I'll stop by to visit and introduce ourselves last weekend of this month.

Woooosh - 9-11-2010 at 12:21 PM

Quote:

Originally posted by sanquintinsince73

Quote:

Welcome to the board. Yeah, no one seems to have a grasp on this issue. One day it's one thing, the next day another. There is no currency change house between the border and the toll road- so it seems like NOT taking dollars there would either force people to drive into TJ to change money- or not come at all. For a decade Rosarito has trained tourists that pesos aren't really necessary- the hotel rates and restaurant menus are priced both in dollars and pesos.

When the new toll road goes in on top of the existing via rapida- it'll be the same situation. The repairs on the free road from TJ to Rosarito are mostly done and that road is a nice now- so maybe that's the solution for some people if you can't pay the toll in dollars.

sanquintinsince73 - 9-11-2010 at 12:28 PM

It's just damned frustrating when you've got alot of really swell places to grub that have shut down due to the economy or lack of tourist's, and others just barely holding on, and now we cant use dollars. Someone in Mexicali surely does not have his thinking cap on.

Who says you can't use dollars?

Dave - 9-11-2010 at 12:45 PM

Quote:

Originally posted by sanquintinsince73
It's just damned frustrating when you've got alot of really swell places to grub that have shut down due to the economy or lack of tourist's, and others just barely holding on, and now we cant use dollars. Someone in Mexicali surely does not have his thinking cap on.

Local businesses in and around Rosarito love to take dollars.

Bob and Susan - 9-11-2010 at 01:08 PM

ALL places and stores in mulege will take dollars

Mexico and Dollars...

BajaCactus - 9-11-2010 at 03:59 PM

I see a lot of confusion on this, and even though I am not an expert on this matter, I will try to explain this issue as best as I can.

The problem begins in Mexico's International US Dollar Value... you see, apparently every country has an estimated ability to move and produce dollars, which is monitored by the US and directly related to the internal production capabilities of the country in question. Mexico's "value" has been almost the same for many years, with very steady and slow growth... however, in the last 3 1/2 - 4 years, Mexico's "value" has multiplied by five.

Because of this happening without any reasonable, logical explanations, the US government assumes that all this movement of dollars is related to the drug cartels (to many clients on the North side, jejeje) and therefore has been pushing the Mexican government to either control this issue or being declared as a non-healthy economical nation, loosing many international rights and the ability to freely trade with other countries, like Colombia in the past. Apparently this has been going for a while and the US is almost about to make this happen.

The Mexican government, specifically Hacienda (our IRS) in an effort to comply, has passed a law in which they limit the amount of dollars anyone can deposit in cash at the Mexican banks... for individuals is $ 4,000 dollars a month, for corporations is $ 7,000 dollars. This limit only applies to cash and is per bank and will be fully enforced starting September 14th, 2010.

Now, how will all of these affect simple mortals like us?... well, any business owner will have to make their own decision into receiving dollars in cash or not.

If that business usually receives dollars in cash, as payments for their goods and services... they will have to make sure not to receive more than the allowed limit, otherwise, they will not be able to use them lawfully within Mexico.

Whether or not you will be able to pay with dollars, in cash, for your Pacificos, Tequila, tacos or whatever, will be entirely up to the business owner.

In Tijuana, big companies, like Costco and Home Depot, have already posted signs at their stores informing they do not receive payments in dollars.

At BajaCactus, we will do our best to keep receiving dollars as long as possible... we will not give up as easily and will try to find the ways of helping our guests, customers and friends passing by.

I hope this information helps a little bit in clearing some doubts regarding this issue.

Happy Travels my friends!!!

BajaCactus

[Edited on 9-11-2010 by BajaCactus]

Bajahowodd - 9-11-2010 at 04:10 PM

Thanks Antonio. I think that for the most part, businesses, especially away from the border, will continue to accept dollars. It's important to remember that the issue is "cash". So many businesses in Baja accept credit cards, so for the most part there will be no affect. Personally, the biggest question related to this situation is whether I can still use dollars to pay on the toll road. For many years, I've waited until Maneadero to stop at an ATM to obtain pesos.

oxxo - 9-11-2010 at 05:31 PM

Thanks, Antonio, for the clear explanation. I think this policy will continue to evolve over the next few months. At this point, it doesn't affect me, since I don't use any dollar cash in Mexico. I either use an ATM to get pesos, or write a dollar check at my Mexican bank to get pesos.

gracias amigo.

sanquintinsince73 - 9-11-2010 at 11:51 PM

Quote:

Originally posted by Bajahowodd
Thanks Antonio. I think that for the most part, businesses, especially away from the border, will continue to accept dollars. It's important to remember that the issue is "cash". So many businesses in Baja accept credit cards, so for the most part there will be no affect. Personally, the biggest question related to this situation is whether I can still use dollars to pay on the toll road. For many years, I've waited until Maneadero to stop at an ATM to obtain pesos.

When I first saw this report, the reporter was standing at a booth on the toll road. He stated that this would affect the flow of turistas thru the toll road. Most certainly I think toll roads will only accept pesos soon because they are federal, they won't be able to take either or.

Woooosh - 9-13-2010 at 09:26 AM

Well... here is today's update on Pesos and Toll Roads: Dollars are OK

http://www.afntijuana.info/afn/?p=13218

[Edited on 9-13-2010 by Woooosh]

durrelllrobert - 9-13-2010 at 10:05 AM

Quote:

When the new toll road goes in on top of the existing via rapida- it'll be the same situation. .

When is this supposed to happen :?:

Woooosh - 9-13-2010 at 11:09 AM

haven't heard a peep about it since this came out in June:

"Escalante said construction is expected to begin within two months, with completion in about two years. The toll will be about $2 and apply in both directions."

http://www.signonsandiego.com/news/2010/jun/01/alternate-bor...

[Edited on 9-13-2010 by Woooosh]