Exchanging Large Sums

[BruceWedding]

I'm arriving in Cancun on the 24th and and trying to decide the best way to convert more than $50,000 USD to pesos. I'm not sure if I should do it in Houston before I leave or down there or what.

And No, I don't want to keep it in dollars. I'll need most of that in pesos to purchase big ticket items soon after I arrive.

[Cokewithlime]

As of September 14, 2010, the Mexican government capped the amount of dollars foreigners(visitors) can exchange for pesos in Banks & Money Exchange Establishments to no more than US$1,500 per month.

You would be best to do the exchange before you leave home.

BTW - don't run afoul of Mexican Customs when you arrive -Travelers are permitted to carry up to the equivalent of $10,000.00 Dls U.S. currency in cash or negotiable credit instruments upon arrival to Mexico, without the need to declare it.

Mexican customs also states "The traveler may also transport sums greater than the ten thousand, but is required to advise customs of the action." Which means that you must declare the amount you are carrying and will probably be questioned further by the Aduana ("Customs") agent...

Good luck

Hopefully some of the other regular expats living in Cancun who are regulars on the forum will also chime in with their comments

[gabesz]

Originally Posted by BruceWedding

I'm arriving in Cancun on the 24th and and trying to decide the best way to convert more than $50,000 USD to pesos. I'm not sure if I should do it in Houston before I leave or down there or what.

And No, I don't want to keep it in dollars. I'll need most of that in pesos to purchase big ticket items soon after I arrive.

Why on earth would you carry so much cash with you? You can always arrange to wire transfer the money from your account to whomever you wish to make a purchase from. This kind of cash will raise major flags and your arrival may not be as pleasant as you think.

[rawkus]

Im with gabesz on this one: No need at all to carry that amount, in cash.

Id get an armored convoy to escort you from the airport, as sums way less than that get "reported" to various, non-friendly people...

My friend that works in the airport has quite a few tales to tell about it all.

Im curious: Why would you need that amount in cash? Open a Mexican bank account and transfer the cash, would be my personal advise.

To answer your question: I do not know of any bank that would help you with this, at least not during "regular business hours". Im sure there are ways(cash) around it all, but Id be very careful.

Hope you find a way that suits your needs.

[V]

I think there is a security risk, too. Here's my suggestion-

You could open an account at www.Everbank.com Everbank is the only bank in the US that I know of where you can have FDIC insured, foreign currency accounts of many different kinds.

Then, ask Everbank to create a peso account for you, and convert the money to pesos- all of which would occur within the bank.

Then, you would come here and open a peso account in a Mexican Bank (which is not a problem at all to do), and have the money wired from Everbank to your new Mexican account.

The wire transfer fee is very low, like $25; and, the Mexican Bank charges nothing for the incoming wire. Mexico imposes no tax on a wire transfer to Mexico.

Once the money was here, in your account, you could use it for whatever is needed.

[Gringation]

I did a wire transfer from a US account to a Mexican account a few weeks ago, and here's what I learned from my bank:

-It costs around $45 US to transfer to a foreign bank account

-You can't add a foreign account to your online account to do an online wire transfer (at least not at my bank)

-Many US banks require you to go to their bank in person to do a wire transfer, so you'd have to transfer whatever you need before you leave the US (ask your bank if they'll let you do the transfer from abroad)

In the end, I was able to do the transfer by having my mom go to the US bank in person with all my Mexican account info, since her name is also on my account.

A friend of mine uses PayPal to transfer money and avoid fees. He set up a US account and a pesos account, and transfers between the two.

Another option might be to find a US bank with no international fees, and just use that debit card to pay in pesos or withdraw pesos from the ATM, but then you wouldn't be able to take full advantage of the nice currency exchange rates right now.

[V]

Gringation, was your wire from a US dollar account, directly to a Mexican Peso account, here? I ask because I think that will work, too, and as I read what you wrote you may have had experience exactly with that.

[Gringation]

V: Yes, an American bank to a Banorte savings account. It was very simple, the only catch was, as I said, one of the cardholders (aka Mom) had to go to the US bank in person. I couldn't do the transfer from here.

[V]

I understand, and I'm glad that's the way it worked for you, because that represents a shorter path for the OP to get the results he's looking for, perhaps.

Before doing a wire transfer, one of my banks in the U.S. requires the personal appearance: the other will do it with a combination of a phone call, followed by a fax.

[TraceyUk]

Why would you announce the date you are arriving with that sort of cash when entering Mexico.? Im confused :0

[T.J.]

I think the best option for the best exchange rate, but not instant gratification to the tune of $50k USD, would be if the US funds were in a BOA online banking account. Bruce could use his ATM card at Santander and there are no fees. There is a limit of some sort, $5,000 - $7,000 pesos per day, but I do not know what it is, nor do I know if it is a BOA imposed limit or a Santander limit. I think Bruce, in his case, should bring in less than the $10k dollar limit, but bring it in pesos. If he is traveling with another person, hopefully with a different last name, that person could likewise be a mule for up to $10k dollar equivalent, also in pesos. I would do that in conjunction with a BOA ATM card.

BOA has recently announced that they will charge $5 US per month as a fee for purchases made with their ATM/Debit cards. BUT, the fee does not apply to ATM withdrawals and IF IT ACTUALLY GOES INTO EFFECT, it will be in January, 2012.

The deal with the BOA/Santander thing is the best legal rate that I know of. The other day I got $13.27 to $1 with the ATM and a Santander customer could have walked in the bank and gotten only $13.10. But only Santander customers can exchange inside the bank. I hit the ATM yesterday and the rate was $13.249. Also made a cash buy at Costco, paid with $100 US, and their rate was $13.00 and I got over $1,000 in change. Pretty good by merchant standards and no hassle, unlike at stupido Walmart.

Keep in mind that you CAN bring in more than $10k, BUT you must declare it. For example, if you were buying property you could bring a copy of the contract or closing papers, in Spanish of course. My worry would be that there would be a tail on him before he got outside the terminal. Not the best scenario in my mind.

Bruce, you can send Private Messages if you have specific questions of any of us and do not want to pose them in a public forum.

Good luck.