Planning a trip to Mexico? When you arrive in the country, you’ll likely pay your expenses in the local Mexico currency, the peso. Even if you’re not traveling and simply sending money to Mexico, understanding the Mexican peso is important.
This guide introduces you to the peso, explores its origins, offers tips for exchanging US dollars (USD) for Mexican pesos (MXN), and provides instruction on how to use money in Mexico.
What is the currency in Mexico?
Mexico’s currency is the Mexican peso, denoted by the $ symbol and the code MXN. The country’s central bank, the Banco de México, issues and regulates the peso.
Pesos are subdivided into smaller units, called centavos, with 100 centavos equaling 1 peso. The ¢ symbol denotes centavos. You can use pesos throughout Mexico for everyday expenses, business transactions, and other financial activities.
When taking out cash, you’ll notice that Mexican bank notes come in denominations of $20, $50, $100, $200, $500, and $1,000. Coins come in denominations of $1, $2, $5, $10, and $20 and 5¢, 10¢, 20¢, and 50¢
History of the Mexican peso
The word peso, meaning “weight,” has a long history in Latin America. In the colonial era of Spanish rule, the most common peso coins were the silver 8-reales, which circulated widely across Spanish territories—including what is now Mexico. After gaining independence from Spain in 1821, Mexico continued using the peso as its national currency.
There are many interesting facts about the Mexican peso. Here are a few that stand out:
- The peso is one of the oldest currencies in the Americas and was originally minted from silver mined in the regions of Zacatecas and Guanajuato.
- In the Mexican War of Independence, José María Morelos issued the Morelos peso to finance his independence movement. These coins are no longer legal tender and are collector’s items.
- During the Mexican Revolution in the early 20th century, the country’s economy experienced hyperinflation and a devaluation of the peso.
- In 1993, Mexico introduced the “Nuevo Peso” (New Peso) at an exchange rate of 1-to-1,000 old pesos to stabilize its economy. It was later renamed peso—the currency still used today.
7 tips for exchanging US dollars to pesos
If you’re traveling, you might be wondering how much money you should bring to Mexico. Knowing the ins and outs of exchange rates and whether it’s more cost-efficient to exchange money in Mexico vs. the US can help you answer that question.
Here are seven tips for exchanging US dollars for Mexico’s currency.
1. Research and compare exchange rates
Your will determine how many pesos you receive for your dollars. Because exchange rates constantly fluctuate, research and compare the most up-to-date rates to get the best deal.
Rely on reputable financial websites like banks or currency conversion services for information on money exchange in Mexico. Take note of any additional fees, as banks and exchange services generally charge fees to exchange currency. These might include commission or transaction fees. Also, pay attention to the spread, which is the difference between the buy and sell rates. The wider the spread, the more you’re effectively paying (more on fees in just a bit).
One of the easiest ways to check the most current USD-to-MXN exchange rate is to use Western Union’s currency converter.
2. Notify your bank ahead of traveling
As part of planning your trip to Mexico, it can help to notify your bank about your upcoming travel plans. This can help you avoid any disruptions in your banking while abroad. If you don’t notify your bank, they could potentially flag your transactions in Mexico as fraudulent. This could result in your credit card or bank account being temporarily frozen, which is a hassle when traveling.
Be sure to also check on your bank or credit card company’s policies and terms for international transactions. Some banks waive or reimburse international ATM fees or even foreign transaction fees. Further, certain banks and credit card companies offer travel-friendly perks like cost-effective exchange rates or lower fees.
3. Avoid exchanging money at the airport, hotels, and tourist areas
If you’re bringing cash on your trip, you’ll probably be looking to exchange that money in Mexico. But do your best to avoid exchanging money at the airport, hotels, and tourist areas. These locations often charge additional fees for exchanging money and rarely give you a favorable exchange rate.
Additionally, steer clear of street vendors or unlicensed currency exchange booths. On top of their generally poor exchange rates, they may give you counterfeit bills.
You may want to consider downloading an app to track live exchange rates before you travel. That way, you can keep tabs on what constitutes a fair exchange rate while traveling. The Western Union® app lets you track exchange rates, send and track money transfers, and more.
4. Consider commissions and fees
We covered some of them above, but depending on where you complete your money exchange in Mexico, you could face a variety of fees. These fees can add up and can include:
- Service fees
- Commission fees
- ATM withdrawal fees
- Credit or debit card fees
- Minimum transaction fees
- Delivery fees
- Network access fees
5. Opt to be charged in Mexican currency when withdrawing money from ATMs
While it’s important to look into all options for where to exchange foreign currency, note that it’s generally wise to withdraw your money in the Mexican peso instead of the US dollar. This can save on currency conversion fees.
Withdrawing money in the local currency allows your bank to handle the currency conversion, often providing your best chance at a favorable exchange rate. Plus, this can help avoid additional fees for withdrawing a foreign currency and finding an exchange service later.
6. Exchange money in Mexico instead of the US
You might be so excited about your trip that you want to exchange your currency before leaving. But not so fast. Exchanging your cash for Mexican pesos in the US may cost you.
Mexico can have more convenient options to access good rates, like using your bank card to withdraw pesos from ATMs or making purchases directly.
7. Use reputable exchanges
Reputable currency exchange services are among the best places to exchange currency. They can help you avoid fraud or scams and save you from losing money on poor Mexican peso exchange rates. Reputable exchanges include licensed banks, exchange bureaus, and reliable online platforms.
Trustworthy currency exchange providers like Western Union utilize the latest fraud protection technologies to secure your money and make your transactions easy and safe. These include:
- Encryption on all transfers
- Multi-factor payment authentication
- SSL technology for data protection
- Biometric security for app transfers
Using money in Mexico
If it’s your first time traveling to Mexico or just need a refresher, you can use the Mexico currency across the country. But there are still some things you should consider when using money in Mexico.
Can you use US dollars in Mexico?
In many tourist areas of Mexico, vendors and businesses accept the US dollar. Still, the Mexican peso is the country’s official currency and, therefore, more widely accepted by vendors and businesses. Having pesos on hand is a good idea, especially if you travel beyond heavily populated tourist areas.
Plus, using pesos may be a better financial decision, as you will likely receive a better exchange rate than using US dollars. You’ll generally be able to use credit cards in Mexico, even US cards. However, you may still need cash for purchases from smaller street vendors.
Tipping etiquette in Mexico
Tipping in Mexico is similar to tipping in the United States. Tips of about 10 to 20% are customary for restaurant wait service, spa staff, and tour guides. Tipping for things like hotel bag service or a taxi driver helping with luggage might range between 10 to 50 pesos.
When in doubt, tipping is a safe bet. It’s viewed as a nice gesture to tip a small amount or round up your total bill for other services as a tip to workers.
Where to get Mexican pesos near me?
You can get pesos at currency exchanges near you in the US or Mexico, including exchange offices, banks, or ATMs. Some banks may require you to give advance notice to use their exchange services, so it can be a good idea to request an appointment ahead of time.
Also, remember to avoid exchanging your US dollar for Mexican peso at the airport or tourist areas to avoid a poor exchange rate. These “tourist traps” tend to sneak in significant fees and markups.
FAQs
Can I use my credit card in Mexico?
Yes, you typically can use your credit card in Mexico. The card issuer will handle the exchange rate for any transactions you make. Remember to first notify your card issuer of your travel plans so that your card isn’t frozen. Also, check your issuer’s terms and conditions regarding international transactions.
Can I use my debit card in Mexico?
Depending on your bank, you can likely use your debit card in Mexico. If you make a purchase, your bank will usually automatically convert your USD to MXN and deduct the amount from your account.
How much is the US dollar in pesos?
The US-to-MXN exchange rate changes constantly. As of mid-June 2024, 1 US dollar is worth 18.5 pesos. Get a real-time USD-to-MXN exchange rate to understand the rate you’ll receive before making a transaction.
