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US Dollars or Pesos in Mexico?

Even though it's been a while since my last visit to Akumal, the local exchange rate hasn't changed since then. Even with all economic panic all around the world, the USD / Peso exchange has stayed the same... or has it? If you've been to Mexico before, you know that almost everybody accept Pesos as well as US Dollars, but which one should you be using to get the most bang for your buck?

So you've arrived in Akumal but you forgot to stop by the bank on your way to exchange some of your US Dollars for Pesos. So you head to the bar and ask them what their exchange rate is, and 90% of the time they'll say "10 pesos per dollar". Doesn't sound bad, and you're on vacation so you don't want to waste time driving to a bank. But if you did go to the bank, you would get the real exchange rate, which is almost 14 pesos per dollar (as of January 2009). It doesn't sound like a big difference, but it is.

If you do not use the bank you'll get 100 pesos for $10 dollars. If the bar charges 40 pesos per drink, you could buy two and a half drinks with that exchange rate. If you go to the bank you'll get 138 pesos for $10 dollars. At 40 pesos a drink, you could buy THREE and a half drinks for the same amount of money. See how fast that money can add up for the duration of your vacation?

Say you take your family out for a nice expensive meal one night. You have some drinks and the best food you could ask for, and your bill comes to 2000 pesos. If you pay them with US Dollars, you would pay $200. If you paid them with pesos at the 13.8 exchange rate, you would have 760 pesos left over, almost $75 US Dollars. Then you could use that money the next day at the bar!

The bottom line is, you should always exchange your US Dollars for Pesos at a bank. If you spend $1000 dollars on your vacation, exchanging at a bank would save you $375, that's enough for a round-trip airplane ticket, which you can save for your next trip to Akumal!

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