dollars and pesos
Every day the value of the peso goes up and down. The mexican economy is very heavily influenced by the US economy. 80% of mexican goods go to the US, so when the US economy suffers, they buy fewer goods from Mexico. Of course then the mexican economy suffers and the peso goes down in value. 
Currently, at todays rate, the peso is valued at 13.2, which means it takes 13.2 pesos to equal $1.oo and every day this figure changes. 2 years ago the peso was valued at 10.0 (this made calculating MUCH easier!) It took 10 pesos to equal $1.00. Here is a link to keep track of the daily peso rate:
The dollar goes a little bit further when the peso climbs, you get more pesos as the rate goes up – however, stores will jack up prices according to peso value. For example, at the Waldo Dollar Store, 2 years ago everything was priced at 10 pesos. Today, everything is priced 13 pesos.
In northern baja, the dollar is excepted everywhere.The further south you go, the less excepted the dollar becomes. It has been noticed that the further south you travel, businesses do not adhere to the peso daily rate and you can still expect to see rates as 10:1 – which was standard 2 years ago. The picture above is a pink 500 peso note, called Quinientos or Keen-ee-entos. This is equivalent to about $38.46 today (2009). The otherblue note, i havent been fortunate to ever see one; but its about $76.92 today.
if you go to any Mexican bank you can expect to see a board posting 2 different exchange rates : one for buying (compra) and one for selling (vente) . This means you are 1. changing dollars for pesos, or 2. changing pesos for dollars. Going to a bank to do this however is more expensive that going to a CAMBIO house. (literally means “change”)
there are cambio stands all over the place in town. Some give better rates than others. Watch the flashing signs and the rates are always different; but only by about a 10th of a point. If your exchanging alot of money this little diference can mean quite alot of money in the long run.
Mexican currrency also utilizes coinage. They have many coins. They are heavier than US coins and wiegh your pockets down more. They are bronze in color with a band of silver along the edges. Many establishments dont even make change if your needing what amounts to cents. They just round up or down.
When you go to a store, most cashiers dont have alot of change. I can never figure this out. If you give Walmart a 500 note, expect to wait a while for change. Cashiers go running, bells go off, and your on center stage. Dont even think about giving a 500 peso note to a small “abbarote” or mini market if you only owe a couple dollars. They will not have change. I actually think the peso currency sytem is easier to figure than dollars. it took me 3 years to learn it however. i was resistant at first. When the rates were 10:1 it wasnt that big a deal. Now at 13:1 it is.
In terms of convenience, some significant improvements have been made since Mexico’s banking industry was nationalized in 1982. In 1991 the government began privatizing the industry. Fourteen of Mexico’s 18 banks were auctioned to the private sector by the end of 1992.
The industry is rebounding and modernizing to accommodate increased international trade and the significant restructuring of the Mexican domestic economy.
Its two largest banks are Banamex and Bancomer. Nationwide there are over 6,300 branches. Many branches have spruced up their public areas, and the number of teller machines you can craw Mexico money from (pesos) has quadrupled since 1991.
In fact, it is now possible for visitors to access ATMs. Bancomer ATMs are now in the Cirrus and PLUS systems, and even offer Spanish/English language menus. Machines will dispense pesos.
Money is often exchanged at casas de cambio (exchange houses) that are open longer hours and offer quicker service. Although dollars are widely accepted (and often preferred), we recommend using pesos during your stay.
Note that the worst exchange rates are often at hotels; the best are actually obtained by using a Visa check card to access money in your checking account at “official” international exchange rates. Exchange houses and banks are the next best option with a slightly lower rate for travelers checks. Exchange fees are not charged.
We recommend exchanging $20-30 into Mexico money (pesos) before leaving the U.S./Canada. This way you’ll arrive in Mexico with pesos for cab fare to your hotel. Also, carry $20-30 in one-dollar bills– they’re great for tipping.
Credit cards are widely accepted, with Visa (the most widely accepted in Mexico) and Mastercard being the cards of choice. American Express is becoming more widely accepted at the larger hotel chains, but don’t count on it elsewhere.
When checking into hotels, clients are often asked for a credit card for incidental charges, and asked to sign a blank charge slip. This is a common practice and should not be viewed with suspicion.
Capitalizing on the Value of the Dollar:
Whenever possible, eat, sleep, dine, and shop where the Mexican nationals do. Peso rates at establishments more attuned to a local versus an international market have remained more stable. The greatest bargains are at inland cities, and beach destinations that cater to Mexican travelers more than foreign visitors.
Exchanging US dollars for pesos in Mexico is fine. Canadian currency is a better rate when drawn through an ATM machine than at an exchange company.
Rates for currencies other than US or Canadian can be really bad, so plan on either drawing money through an ATM or purchasing American Express Travelers Checks (IN US DOLLARS) before you leave your country.
Use pesos rather than dollars for transactions in Mexico. In general, restaurants, shops and taxis will exchange your dollars at a rate lower than what is paid by local casas de cambio. By exchanging dollars for pesos, and then shopping with pesos, you will maximize your savings.
Use credit cards whenever possible. There are two reasons for this. First, your purchase will be converted into dollars at an exchange rate more favorable than what you will likely earn by changing dollars into pesos at, say, your hotel.
Second, if you use a Visa check card to draw money directly from your checking account, you will save time waiting in line to exchange travelers checks or dollars and the exchange rate will be calculated using official international rates.
If you are coming from a country other than the United States, using a credit card to draw money from an ATM is more important than ever as banks and currency exchange places throughout Mexico will offer you exchange rates that are down right insulting.
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