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kevin_in_idaho
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Peso prices pegged to the Dollar or ???
I'm curious what people are seeing in Baja. Are the peso prices of items going up to keep the US dollar price the same or can we actually get more
purchasing power with our dollar?
For instance. If a fish taco was 1USD a year ago (12 pesos?), is that same fish taco now 22 pesos or is it still 12? I could see it making a
difference if you are paying in dollars vs. pesos but if prices are listed in pesos are they changing them daily?
I'm just curious. I've been to a lot of countries and some of them have 2 separate prices; local and tourist.
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woody with a view
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if it says 12 pesos use pesos. pretty simple.
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David K
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Small shops, taco stands have the prices in both currencies often posted, with the peso amount being actually cheaper to the American who bought pesos
at the border.
In other words.
A fish Taco may be one dollar or 20 pesos posted
If you bought your pesos this week, you would get maybe 22 pesos for that dollar. Use the pesos, pay 20 for the taco.
If you use dollars in Baja, that 'dollar' taco just became a 22 peso taco in actual value.
At Pemex stations, it is pretty close but still is offset for them to process the dollars. So while I bought pesos at 20 per dollar (at the border,
almost 4 weeks ago), the Pemex stations posted that they were taking dollars at the rate of 19.00 per dollar.
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motoged
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Quote: Originally posted by David K  | | Small shops, taco stands have the prices in both currencies often posted, with the peso amount being actually cheaper to the American who bought pesos
at the border..... |
David, with all due respect, I cannot recall ever seeing a double price list at a taco stand or at small shops.....
Don't believe everything you think....
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David K
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Not all, just often you will see both prices on menus... especially with the peso dropping so rapidly in value recently.
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bajaguy
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You are over thinking things........"always"* use pesos in Mexico/Baja. Get your pesos from the ATM's in/at banks. The exchange rate favors you
*YMMV
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kevin_in_idaho
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| Quote: Originally posted by bajaguy | You are over thinking things........"always"* use pesos in Mexico/Baja. Get your pesos from the ATM's in/at banks. The exchange rate favors you
*YMMV |
That's our plan. Can you get them on either side of the border? We're going in via Caliexco/Mexicali east.
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AKgringo
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I agree with Bajaguy and Woody, local vendors are aware of the exchange rate, and unless they are stashing dollars as an inflation hedge, they will
have to pay to exchange them at the bank. I have not found a situation where it was an advantage to use dollars, although it may happen somewhere.
I don't know if the situation has changed, but back in late November and early December, I could not exchange dollars for pesos at the bank in Mulege,
or Loreto. It was also limited exchanges with a debit card at the ATMs, so don't wait until you need more pesos to do the exchange!
If you are not living on the edge, you are taking up too much space!
"Could do better if he tried!" Report card comments from most of my grade school teachers. Sadly, still true!
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AKgringo
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Kevin, you might want to ask your local banks if they have pesos on hand. I started my trip by getting 6000 pesos (all they had) at a local Wells
Fargo in a small town in northern CA.
Did I get the best exchange rate? Who care's, it was convenient, gave me more options about where and when to get additional cash, and was an
insignificant expense compared to the rest of the trip.
If you are not living on the edge, you are taking up too much space!
"Could do better if he tried!" Report card comments from most of my grade school teachers. Sadly, still true!
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vandenberg
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Get pesos before you cross and use credit card where ever possible They get you the best exchange rate. Tell your bank you're in Mexico.t
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David K
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| Quote: Originally posted by kevin_in_idaho | | Quote: Originally posted by bajaguy | You are over thinking things........"always"* use pesos in Mexico/Baja. Get your pesos from the ATM's in/at banks. The exchange rate favors you
*YMMV |
That's our plan. Can you get them on either side of the border? We're going in via Caliexco/Mexicali east. |
Several on the right in Calexico before the border. I used the one that shares an auto parts store parking lot.
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BajaNomad
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Thread Moved
1-21-2017 at 01:22 PM |
Alm
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I'm curious whether this is the first inflation your ever saw. Welcome to the club then. Prices are going up on imported items since those are
purchased and priced in the US. There can be a delay, vendors not always can or want to jack prices up immediately. Old stock can be sold at the old
prices.
Peso/dollar inflation pulls local items into this orbit too. Some more, some less. Taco could be local but taco stand and the car pulling this stand
are likely US made and USD priced when purchased. Also, don't know whether you heard about it, there was a recent steep increase in gas prices - this
ALWAYS leads to higher cost of local items.
See above.
Mexico is less prone to this double-price game, being physically close to the US, but it does happen.
[Edited on 1-21-2017 by Alm]
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Sweetwater
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| Quote: Originally posted by AKgringo | Kevin, you might want to ask your local banks if they have pesos on hand. I started my trip by getting 6000 pesos (all they had) at a local Wells
Fargo in a small town in northern CA.
Did I get the best exchange rate? Who care's, it was convenient, gave me more options about where and when to get additional cash, and was an
insignificant expense compared to the rest of the trip. |
I just got a standard exchange through a local bank that charged 5%. Effective exchange rate was 20.4 p/USD which seems more than reasonable. Remember
that you'll get the daily rate minus fees if you withdraw from an ATM, credit cards have more fees, debit cards have less fees has been my experience.
Single charges to a Credit card haven't done well for me in the past, Cash is king and I like starting a trip that has been prepaid to some extent.
Everbody\'s preachin\' at me that we all wanna git to heaven, trouble is, nobody wants to die to git there.-BB King
Reality is what does not go away when you stop believing in it. -Philip K Dick
Nothing is worse than active ignorance. Johann Wolfgang von Goethe(1749-1832, German writer, artist and politician)
When choosing between two evils, I always like to try the one I\'ve never tried before. - Mae West
Experience is what keeps a man who makes the same mistake twice from admitting it the third time around.
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motoged
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What I don't understand is why folks think their home country currency should be accepted by vendors outside their country. Saving a percentage point
here and there might make sense on paper, but sure doesn't when you offer a US $20 for 2 tacos at a small stand at night that doesn't even have a
float to change a $500MP.
When travelling, have a few 100$$$'s of home currency in local currency....and don't expect banks to always exchange your home currency....Bancomer,
for instance, won't change US $$$ to pesos unless you have an account with them.
It's kind of arrogant to expect other countries to work the way your own does....running out of local currency means you are either broke or haven't
planned very well.
Don't believe everything you think....
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woody with a view
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Ged, I doubt my local taco shop in Sandy Eggo would accept Loonies, much less Pesos......
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David K
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We don't Ged, it is Mexico that makes the rules for Mexico. For as long as I can remember, everyone in Baja takes and uses dollars and not because we
Americans have any problem using Pesos. In markets, hundreds of miles south of the border, locals use dollars to buy things. In Baja, at least, it is
a dual currency region. If Mexico won't take them anymore, then we all can exchange our money at the border, just like we do when traveling to other
countries.
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mtgoat666
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| Quote: Originally posted by motoged | What I don't understand is why folks think their home country currency should be accepted by vendors outside their country. Saving a percentage point
here and there might make sense on paper, but sure doesn't when you offer a US $20 for 2 tacos at a small stand at night that doesn't even have a
float to change a $500MP.
When travelling, have a few 100$$$'s of home currency in local currency....and don't expect banks to always exchange your home currency....Bancomer,
for instance, won't change US $$$ to pesos unless you have an account with them.
It's kind of arrogant to expect other countries to work the way your own does....running out of local currency means you are either broke or haven't
planned very well. |
Some places in Mexico take dollars. It's like that in many countries. US dollar is a global currency.
Things are changing a bit as Mexico tries to clamp down on the cash economy and tax more transactions,... and Mexicano has lately tried to make it
more diffucult to bank in dollars,...
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motoged
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Eggxactly !!!
Don't believe everything you think....
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AKgringo
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For what it is worth, the last time I drove north on the Alaska Highway, I was able to use my excess Canadian currency at a Carr's grocery store
(owned by Safeway) in Anchorage. I am pretty sure I got a full rate of exchange, but not positive
If you are not living on the edge, you are taking up too much space!
"Could do better if he tried!" Report card comments from most of my grade school teachers. Sadly, still true!
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bajaguy
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I believe your best exchange rate (remember, YMMV) is using a debit card. The exchange rate is set by your card issuer (VISA or Mastercard) not your
bank or the Mexican bank
If you use a US bank that has a working relationship/partner agreement with a Mexican bank, you may avoid ATM fees or be reimbursed for ATM fees.
There are some US banking institutions that reimburse all ATM fees (Charles Schwab for one)
Just remember when you use the cash exchange businesses in the US or in Mexico, even though they advertise no commissions, they are making money on
your transaction and you will not get the best rate (see ATM use above).
I have used Mexican bank ATM's for many a year with no problems, and my bank (USAA) reimburses ATM fees.
Banks are all over Mexicali and there is probably an ATM in the Customs/Immigration building where you will be getting your FMM
One note....BBVA Bancomer has the highest ATM rates of any bank in Mexico
Another note........You also might want to get a US credit card with no International fees......such as a Chase.Southwest Airlines VISA
| Quote: Originally posted by kevin_in_idaho | | Quote: Originally posted by bajaguy | You are over thinking things........"always"* use pesos in Mexico/Baja. Get your pesos from the ATM's in/at banks. The exchange rate favors you
*YMMV |
That's our plan. Can you get them on either side of the border? We're going in via Caliexco/Mexicali east. |
[Edited on 1-22-2017 by bajaguy]
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