BajaNomad

Currency Question

Croft - 8-20-2015 at 02:47 PM

I have a question that some of you old time Baja travelers can help me with. We are Canadians planning to spend +/- five months this winter on the Baja in our motorhome. We will be exploring the entire length of the peninsula.

We are very experienced Mexico RVers, having explored every mainland Mexican state for a total combined time of about five years.

My question concerns currency on the Baja. We would like to stash whatever US cash we have when we cross into Mexico away and work entirely on the Peso system. We are familiar with and very comfortable with the peso system. We are in a foreign country and feel it is insulting to try using American currency. We want to use pesos.

However, what I am seeing is that in almost every post here that mentions cost, that cost is expressed in US dollars. What is the deal? Is US currency the currency of choice on the Baja? Among travelers? How about among locals? Is there a two currency system going on? Can I pay for supplies with pesos? How about gas?

I have to admit I will feel much better if your answer is that you use pesos but is not, where do we get US dollars? Do Baja ATM's dispense US dollars? Help me out here.

BigBearRider - 8-20-2015 at 02:50 PM

You can usually pay in dollars in Baja, but you'll almost invariably get a better deal paying in pesos. This includes gas stations. I've never tried to pay with Loonies...

Some ATMs dispense dollars. I always use pesos, so that's what I get at the ATM.

DENNIS - 8-20-2015 at 03:02 PM


It's not insulting at all. You can spend pesos here and there in the California border cities. It's just not a good idea because of the fluctuating exchange rate, and the bad exchange at point of purchase. When sellers take dollars, they have to get involved in the currency exchange eventually and it can be a pain in the butt for them too.
I think, perhaps, why you see dollar references here is because, for conversation purposes, that's what we know best.
There have in the past been ATMs here that would give dollars, but it was costly, and there are very few, if any, left that do it, due to the volatile exchange rate.
If, when down here, you have a need for dollars, just use the ATM and go to a cambio and exchange Ps for Ds.
Worrying about all this exchange stuff would ruin a trip for me. It just ain't worth it.

bajaguy - 8-20-2015 at 03:23 PM

Use pesos, it is better for everybody.

Don't forget to notify your bank/credit & debit card companies with the anticipated start and return dates that you will be in Mexico.

PaulW - 8-20-2015 at 04:59 PM

Don't know about the Canadian details, But if you have US dollars you can do what we do. That is put a bunch of dollars into a MX peso bank account. Then withdraw from that bank or branch or use the debit card that comes with that account at any ATM and replenish your wallet. Yes, there will be a small ATM fee each time, so make a bigger withdrawal to minimize the expense.
We use Well Fargo and do electronic transfer to the peso account at Bancomer. Yup, still another fee so we like large transfers. The fees you pay are insignificant since you get the bank rate exchange rate which is way better than other ways to get pesos.
Another way is just use an ATM with one of your cards - A Canadian bank is unknown to me, but US cards work fine with the usual small ATM fee. And you get the bank exchange rate.

Anyway pay with Pesos and no more ripoffs at hotels, gas stations, and restaurants due to the bad exchange rate when you use do not use Pesos.

David K - 8-20-2015 at 05:01 PM

Using Pesos keeps it easy to have a nice vacation and not worry if you got ripped off, if you tend to feel that way ever.

U.S. dollars are accepted everywhere, and locals use it to buy stuff in stores (it holds its value longer than pesos, lately). Baja California Sur may be more peso oriented than Baja Norte, however.

Croft - 8-20-2015 at 06:46 PM

So the Baja is peso friendly and that is what I will use. Thanks everyone.

Pescador - 8-22-2015 at 10:48 AM

Because of its proximity to the border, dollars are acceptable probably all the way to Ensenada or San Quintin, but it is a really bad idea when you get south of there. If you pay a local fisherman dollars for a few fish, he has a serious problem changing those dollars into something to use to buy things for the family. If he goes to the store he may only get 12 to 1 exchange or worse. If he has no bank account it becomes really difficult to exchange. I have fishermen who come to my house all the time asking to change dollars. They can not go to the bank unless they have an account and very few individuals do. So out of necessity, the northern places like Tijuana, Rosarito, and Ensenada accommodate the use of dollars, but it is a real imposition further down.

rhintransit - 8-22-2015 at 08:10 PM

Quote: Originally posted by Pescador  
Because of its proximity to the border, dollars are acceptable probably all the way to Ensenada or San Quintin, but it is a really bad idea when you get south of there. If you pay a local fisherman dollars for a few fish, he has a serious problem changing those dollars into something to use to buy things for the family. If he goes to the store he may only get 12 to 1 exchange or worse. If he has no bank account it becomes really difficult to exchange. I have fishermen who come to my house all the time asking to change dollars. They can not go to the bank unless they have an account and very few individuals do. So out of necessity, the northern places like Tijuana, Rosarito, and Ensenada accommodate the use of dollars, but it is a real imposition further down.[/

Very true. I've had to discourage folks from tipping with dollars in Loreto, for the above reasons. On top of that, if the bill is torn, written on or otherwise defaced, it is almost impossible to exchange.

[Edited on 8-23-2015 by rhintransit]

Bajahowodd - 8-24-2015 at 05:02 PM

The Peso has crashed, due to the stock market shenanigans. When it is something like 18 to 1 against the USD, do not use dollars.

SFandH - 8-24-2015 at 05:42 PM

Quote: Originally posted by Bajahowodd  
When it is something like 18 to 1 against the USD, do not use dollars.


Huh? er, um, what ratio is good to "use dollars"?

'splain that willya?

bajaguy - 8-24-2015 at 05:48 PM

Anytime the peso is above 10 to one us dollar, that is good enough for me
Quote: Originally posted by SFandH  
Quote: Originally posted by Bajahowodd  
When it is something like 18 to 1 against the USD, do not use dollars.


Huh? er, um, what ratio is good to "use dollars"?

'splain that willya?

SFandH - 8-24-2015 at 05:58 PM

I guess I don't get it. I use pesos in Mexico and dollars in the US. The exchange rate doesn't matter to me. Of course my income and assets are in dollars. I don't have stashes of both currencies.

Maybe this is a good time to build a peso stash, is that what you're saying? I'm of the opinion it will always be good to keep it all in dollars. Convert to pesos only when spending in Mexico.

[Edited on 8-25-2015 by SFandH]

Bob and Susan - 8-25-2015 at 05:47 AM

I agree..

mexico pesos
usa dollars
Canada loonies

exchange your money at the border just before you cross...
exchange it back when you return

current rate is 16 to one per dollar for the tourist
that's about a $25usa bonus over last year per hundred dollars

have a great vacation value

Hook - 8-25-2015 at 06:32 AM

I dont think it's ever a good idea to "build a peso stash" beyond a few thousand pesos, say 10-20k. The peso is too volatile and it's tendency is to go down in value (with it's dependence on oil, which is crashing). Just have a stash like that and use it to buy, buy, buy goods because their cost WILL eventually correct to the devaluation of the peso. But until it does, you are ahead of the game. Spend down, and build back up to that level at times when the dollar strengthens.

Of course that is an impractical strategy for a traveler. This is a strategy for a resident down here.

If you are a traveler, just use your ATM card, take out the meager max you are allowed and enjoy your trip. It's what I'll be doing in Europe in a few weeks. Any "losses" in not exchanging a "large" amount of dollars are insignificant, especially in the face of the liability of dealing with all that cash.

dasubergeek - 8-25-2015 at 10:51 AM

You can exchange your money on either side for about the same rate. The current bank rate is 17.2 pesos to the Ameribuck, which means the cambios will give you something like 16.6 or 16.7.

Lee - 8-25-2015 at 11:02 AM

Quote: Originally posted by dasubergeek  
You can exchange your money on either side for about the same rate. The current bank rate is 17.2 pesos to the Ameribuck, which means the cambios will give you something like 16.6 or 16.7.


Your numbers are off.

11:00 PST, Wells Fargo is at 16.12 and Bof A is probably matching them, the Cambio at Costco Chula Vista is selling for 15.80.

ATM's SOB still best bet.

bazinga - 8-25-2015 at 12:48 PM

16.46 exchange at bancomer yesterday. I moved 1,000 from my dollar account to pesos.

BajaRick16 - 8-25-2015 at 04:18 PM

Currencies are fluctuating right now, but at this moment, the Schwab exchange rate is 16.9859. No bank fees, and Schwab reimburses any ATM fees with no limit. Seems to be the best deal out there or at least tied for the best.

There is usually a "spread" of about 8 one-hundredths of a peso from the xe.com daily published rate...so IF things don't change, tomorrow's Schwab exchange rate would be approx. 17.18.

Hook - 8-25-2015 at 05:13 PM

0.08 is a great spread.

Have you found that Schwab's rates change during the day or is it one set rate for the entire day?

BajaRick16 - 8-25-2015 at 05:26 PM

That's a great question and I'm not 100% sure. There definitely is a lag...and it is quite noticeable right now since there has been such a huge improvement over the past several days. They do seem to "catch up" by the next day.

When I spoke to the Schwab folks, they said just google "Visa Exchange Rate Calculator", and that's how you can find the rate they use to charge your debit card when you buy something or get pesos from an ATM.