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Author: Subject: Shocked at Costco
Alan
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[*] posted on 11-16-2010 at 09:06 AM


Quote:
Originally posted by Bob and Susan
we have been "spoiled" along time...
using american dollars in mexico was a great advantage
but...
it may be over

you have to remember the mexican economy
IS NOT entirely based on the tourist dollar

the dollar does contribute...don't get me wrong

there are HUGE manufacturing plants
oil production
large farms
trucking
subways
tall buildings
universities
etc in mexico

i still haven't found an easy way to move dollars
to pesos but i'm working on it
bank transfers are expensive and slow

small businesses will take dollars for along time
the big businesses won't

you have to sell ALOT of hamburgers
to make AND deposit 15,000 pesos in a month
in the bank and be charged the 3%

tourists should plan on converting dollars to pesos
before they travel
it's very easy at the border

remember canadians cannot
spend "the loonie" in mexico
what do they do?

I guess I just don't understand what the big problem is with using pesos. It seems to me this is such a minor inconvenience when one considers the reasons for this policy change. Mexico (Calderon) is courageous enough to finally take some meaningful approaches to seizing control of the country back from the cartels.
1. They are using their military to attack the leadership
2. They are strengthening their borders to seize weapons and drug profits coming in from the US
3. and now they are trying to make it more difficult for the cartels to spend their drug profits.

If we love Baja as each of us exclaim we should be supportive of his actions and stop quibbling about such a minor inconvenience.

Additionally, and perhaps because I have become most familiar with La Paz which isn't as dependent on the tourist dollar as so many other towns in Baja I think we have become very egotistical about the importance of the US dollar to Mx. because it is so important to the relatively few places we actually frequent. Beyond the border towns and the resorts such as Cancun or Puerta Vallarta the vast majority of Mexico's population never even sees a dollar in their course of daily business.

Why is it so difficult to simply leave your dollars at home and get pesos from the abundant ATM's?




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David K
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[*] posted on 11-16-2010 at 09:20 AM


Good point Alan... It might be good to change dollars into pesos for protection as well for those who travel frequently to Mexico... as the dollar slips into the toilet because of what is going on (printing dollars lowers their value).



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Riom
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[*] posted on 11-16-2010 at 10:58 AM


Quote:
Originally posted by bajalou
I thought I read that the tax can be used as a credit against your Mexico income tax. ??


Yes, the IDE deposit tax is an advance tax (in case the government doesn't get anything else). It can be deducted from future corporation tax bills:

PKF Mexico Tax Guide 2010

So it's not an extra cost for a business (it's a prepayment for tax that would be due eventually anyway), although it does affect cashflow a bit.

Rob




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karenintx
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[*] posted on 11-16-2010 at 11:04 AM


Quote:
Originally posted by morgaine7
"Owing to new banking regulations, cash payments over $xx.xx must be in Mexican currency"?

Kate


OR...a sign that reads:

"Cash payments over $xx.xx will have 3% added to the bill."

I have seen signs and been told this many times when I asked a business if they accept credit cards. It would then be left up to the consumer to make the decision.

When told I would have to pay an addtional ??%...I pull out my pesos.

.

[Edited on 11-16-2010 by karenintx]
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