Dollar Restrictions in Cancun?

[Steve]

Sorry to bring this one up again, tourists are asking on other forums.

We use Dollars so seldom for touristy type things that I'm not sure I'd notice if a limitation actually were the case. I know Costco doesn't seem to have changed their policy and my guess is that it's unlikely to have changed elsewhere too.

Is anyone aware of any tourist related businesses insisiting on Pesos only? I dont mean the Oxxo in SM 68, nor the likes of travel operators such as Funjet or Thomson. More Cancun based tour companies, nightclubs, transfer companies, restaurants, bars, taxis, buses etc. You know, things that tourists might actually expect or be used to paying dollars for.

Or is this just another hyped story to persuade US tourists to keep away from Mexico?

[CancunCanuck]

Most of my company's transactions are done via credit card, but I am asking around to see what is happening "on the ground". The law won't allow anything larger than $100 in any one transaction, but I don't know if companies are sticking to it or finding ways around it. I did see a sign in McDonald's that they won't accept USD. Will let you know if I find out anything more....

Mexico currency laws make it tougher to pay in dollars - USATODAY.com

[T.J.]

I saw a Costco sign that said to the effect of, that purchases with USD were limited to $100. That was a couple of weeks ago.

I did notice that the Casa de Cambio place behind Starbucks at Plaza Hollywood will now buy up to $300 USD per day but their rate was a crappy $12.00 per $1. While standing there I checked the Banamex rate and it was $12.15. Yesterday I got $12.12 at Home Depot but the bank rate could have changed easily by $.03 from early am till after banks closed.

It is nice to be able to go to Walmart or somewhere, buy a few things, pay with a $50 US and get $500 MXN for change. Did that yesterday actually. And went thru the fairly new Tercera Edad line at Walmart. That line was full of old duffers and pregnant ladies. LOL

[Gringation]

Good article (nice quote in there, too!)

Just wish they hadn't thrown in that last paragraph, as it seems kinda unrelated.

Sh*tty comments, too... as usual.

[V]

Just wish they hadn't thrown in that last paragraph

Isn't that the truth. It was a purely gratuitous comment, just a reminder to the readers to "stay out of Mexico". Oh, brother....

I wonder if this kind of stuff isn't part of a concerted effort to keep American visitors home, so they'll spend their tourist dollars locally, and contribute to the sagging economy there.

[Cancun Fun]

Home Depot will only accept 100 usd per transaction. Wal Mart still take them but you have to spend at least half of the amount in order to use usd.

[Life_N_Cancun]

As if the drug cartels are laundering the money at Wal-mart.... I appreciate the attempt but I think the only people really affected by this law are small business owners, tourists, and expats... and that effect is a negative one. As someone pointed out a while back, for a country that advertises itself as a retirement destination for American's they sure don't make it easy...

[Gringation]

A friend of mine works for a private bank, dealing mostly with large hotel chains in the area. Most of what they do is exchanging foreign currencies.

His job is to check all the paperwork going through to make sure no money laundering is going on.

Apparently currency exchange is a popular way to launder money. Dunno if drugs cartels are involved... Not sure how it's done either, but I guess I'd rather stay naive and innocent haha

[CancunCanuck]

I really don't see what the big deal is, there are ATMs everywhere and credit cards accepted. Can I use Canadian dollars or pesos or British pounds in the US? Uhhh, nope, so why should you be able to use USD anywhere except the US? I've never understood that....use the currency of the country you are in, I wouldn't go to Japan and expect to use anything other than yen....

[playagrandma]

Originally Posted by CancunCanuck

I really don't see what the big deal is, there are ATMs everywhere and credit cards accepted. Can I use Canadian dollars or pesos or British pounds in the US? Uhhh, nope, so why should you be able to use USD anywhere except the US? I've never understood that....use the currency of the country you are in, I wouldn't go to Japan and expect to use anything other than yen....

the big deal is Mexico has always allowed it and now they arent. I agree with you, when in Mexico use pesos. I have been coming here for 22 years and could use american money back then. I live here, I dont care. But with everything else going on here -it just seems they picked a bad time to enforce. Playa is dead now and with all travel agencies telling everyone their money isnt welcomed -well its just something that should have been worked out without announcing it to the whole world

[Life_N_Cancun]

That's about the just of it.. it's the sudden change and seemingly very low limits... for people who live here and have money outside the country they just go to the ATM to get pesos... for those who live and work here with the tourist industry it's become more difficult to deal with customers who want to pay in dollars (which is a very high percentage)... Then you have tour companies and media outlets telling potential visitors they can't use there money here at all (which is incorrect) which will scare off many first timers and some repeaters who don't want the stress of trying to get pesos locally before their trip since they think they need to travel with them in hand. You also have to remember a lot of people here would rather keep their savings in dollars than pesos (the nuevo peso has already devalued several hundred percent since it's introduction in 1993 after the "old" peso collapsed)... so that money saved is now much more difficult to spend without getting screwed on the exchange and making multiple bank trips to change it, whereas before you could just buy that 52 inch TV with cash... I agree for most of us its not a big deal and just an annoyance at most, but for some it's a nightmare trying to navigate the law and stay in business.. meanwhile I doubt very much that it's really hindered the people who have been laundering money professionally for years and years...

[T.J.]

I had a meeting where one of the guy's wife's bank account had two ATM transactions, totaling about $24,000 pesos. He was 100% certain that it was a counterfeit magnetic strip of some sort, in consort with some sort of camera where the pin was compromised and a dip, whatever that is. The bank refused to reimburse or do anything saying that it appeared in all respects to have been her card that was used.

My point is, that some people, me included, prefer not to use ATM cards, for various reasons, but theft is sure one of them. Those foreigners here on an FM3 Rentista are prohibited from earning money inside of Mexico so the presumption is that we bring money from outside the country. In fact, we have to prove we have the funds or the income from abroad in order to get the FM3.

As Life says, the smugglers/money launderers etc. are not washing dollars at Walmart. It is a total pain for me. I deal with it but not happily. This is the most stupid "policy" yet and we all know there are plenty of stupid policies. But as we can smilingly say - "BIENVENIDOS A MEXICO" and if we don't like it here we can always leave.

I have brought pesos here from Florida banks but the rates/transaction fees at Florida banks are much less favorable than at the banks here so I quit that years ago. Maybe it is time to look into that again but I also had to place the order, and go back in 2 days to complete the transaction.

My gripe is not with the merchants but with the banks (if I read the article correctly, it is a bank policy or merchant policy that is being enforced now) who make a profit on the exchange rate differential. BUT Canuck, in the Orlando tourist area you can exchange money pretty easily and many of the larger national and local retailers in the tourist area will accept some foreign currencies.

If someone wants $2,000 US, for example to go on vacation to the US, if they were to go to Banamex today, without this stupid policy, they would pay $25,200 pesos. One minute later, I could walk in with $2,000 US and want pesos for my living expenses for a couple of days or so (joke). I would receive $24,400 pesos at the current rate. The net result is that the bank has "earned" profit, transaction fee, commission or whatever, of $800 pesos. Multiply this by the zillions of transactions all over Cancun in the banks during a day, week or month, and it is a sizable loss of income for the banks, we get ripped off by going to the casa de cambio and it is a huge pain in MY butt for the inconvenience. I now find myself paying for things with $50's and getting my change in pesos, sometimes at a lower rate than the one shown at www.banamex.com.mx, which prior to the policy, was the rate you would get if you walk in off the street, although they told me once that there was a 20 minute lag time between the rate change happening and the internet site reflecting it.

But I think you get my point.