Money in Mexico

Complete Guide to Money in Mexico

In addition to explaining Mexico's currency, this guide shares lots of local knowledge about managing your money in Mexico, the banks, currency exchange, and how to make the most of your money in Mexico—whether you're here for leisure, for business, to live, work retire or invest in real estate.

• The Mexican Peso
• Mexican Bank Notes
• Coins and Small Change in Mexico
• Old Mexican Bank Notes
• Using Traveler's Cheques in Mexico
• Using Credit & Debit Cards in Mexico
• About Banks & ATMs in Mexico
• Exchanging Money in Mexico
• Money Transfers
• Money Safety
• Prices in Mexico
• Blogs about Money and Economy

The Mexican Peso

Mexico's currency is the Mexican Peso. There are one hundred Mexican cents (centavos) to every peso.

The symbol for the the Mexican Peso is $. To distinguish this from the Dollar, you sometimes see it presented as MX$ or the value with the letters "MN" after it, e.g. $100 MN. The MN stands for Moneda Nacional, meaning National Currency.

Mexican Bank notes are printed in denominations of 20, 50, 100, 200, 500 and 1,000 pesos. The most commonly seen and used are the 50, 100 and 200 peso notes.

Value of the Mexican Peso

The Mexican Peso is a "free floating" currency in Foreign Exchange Markets and like other similar currencies, its value fluctuates daily.

• Check The Current Value of the Mexican Peso

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Mexican Bank Notes in Circulation Today

All Images are Copyright (C) Bank of Mexico

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Coins and Small Change in Mexico

Mexican cent coins are minted in denominations of 5, 10, 20 and 50 centavo (cent) pieces; however, it's very rare to see coins of less than 50 centavos these days.

Peso coins in denominations of $1 $2, $5, and $10 are used frequently in Mexico, especially for paying small tips. There is a limited edition $20 peso coin in circulation, but these are rarely seen as people collect them.

Making Small Change in Mexico

Getting change always seems to be a perennial problem in Mexico: try to make as much change as possible to use with independent traders by spending larger denomination notes in big stores; you will need the smaller notes for taxis, local buses and other small purchases where the traders often don't have the available change to hand.

See Related Blog: No Hay Cambio

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Old Mexican Bank Notes

People with old $1,000 or even $100,000 peso bank notes wonder if they may be exchanged for new money. Well, they can be, but the value will vary depending on which bank note you hold and from what year. Old notes may be exchanged at the Bank of Mexico for new ones; traders and shops won't accept them. You can get details about exchanging old money for new from the Bank of Mexico web site.

See Related Blog: The Value of Old Mexican Bank Notes

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Traveler's Cheques in Mexico

Travelers' Cheques are a safe way to carry 'virtual cash' with you to Mexico, and will complement the use of a cash-machine card if you have one (see using Credit and Debit Cards, later in this guide).

Most exchange houses and banks do not levy additional fees to cash traveler's cheques in Mexico; you get the face value of the check multiplied by the day's rate of exchange.

If the place you go to cash your traveler's cheques does charge a fee, find somewhere else: it's NOT normal practice to levy commission charges or fees to cash traveler's cheques (or foreign currency cash) in Mexico.

Tip: Even if you have a cash-machine card, you may consider carrying traveler's cheques as a back-up to your bank card, should it get lost, damaged or retained by an ATM for some reason.

If you carry traveler's cheques, here are a few tips for using them in Mexico:

• Carry well-known branded checks; American Express or VISA are the best known in Mexico.
• Although in the past, US or Canadian Dollar traveler's cheques were the best option, these days both Sterling and Euro traveler's cheques are widely accepted and the rates of exchange are favorable. Australian Dollars are still not as widely recognized in Mexico.
• You'll have trouble cashing traveler's cheques on Sundays as banks and exchange houses (except main airport branches) are generally closed. Plan ahead or use an ATM card.
• Keep the cheques safe - you may want to leave them at the Hotel Deposit Box if they're just for emergencies.
• Some places ask for two forms of identification to cash traveler's cheques (e.g. passport AND driver's license); go prepared to the exchange booth.
• Hotels will take payment by traveler's check (or cash them for you) but their rates will generally be unattractive in comparison to banks or currency exchange houses.

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Using Credit and Debit Cards in Mexico

Major credit and debit cards are accepted at hundreds of thousands of hotels, shops, restaurants and travel service providers in Mexico. Your purchases will charged in pesos, and your bank will convert the amount back to the equivalent in the local currency where your account is held and charge it to your account.

Charges for Use of Cards

Banks make a "foreign exchange charge" which can be up to 2.75% of the transaction value for use of Debit and Credit cards in Mexico.

The exchange rates used to convert the pesos back to your local currency when making a purchase on the card are usually the same as if you were drawing cash from a cash machine using your card (see ATMs section, below). You can ask your bank what charges apply, as they vary from bank to bank (and between different kinds of accounts).

Card Signatures in Mexico

Most establishments in Mexico now have the "swipe" machines like the ones used in stores in the US and Europe. The old "carbon copy" desk imprinters are all but obsolete now, except in special circumstances when the electronic systems are down. Swipe machines will require your hand signature, but the latest "Chip and PIN" technology is now being introduced in Mexico.

With the latest cards, the stores or restaurants enter your card into a special device that reads the encrypted chip now embedded onto many bank cards. Instead of signing a voucher, you are asked to enter your card's PIN number (cover your hand when you do this). Some establishments also ask you to sign the voucher that the machine prints out, but it's not necessary. Your bank won't charge you twice if you do.

Blog Article: Card PIN Requested at Stores in Mexico

Credit and Debit Card Safety in Mexico

If you're planning to use your Credit / Debit card in Mexico, take a moment to read the paragraph on Money Safety later in this guide.

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Banks and ATMs in Mexico

Banks in Mexico

Mexico's banks offer a network of ATM machines that can be used to withdraw local currency. Although some banks offer cash and traveler's check exchange, they are not the ideal place to undertake this kind of business: go to an exchange house instead. If you need to transfer money to or from Mexico, this is probably best done through an agency set up for the purpose (see Money Transfers, later in this guide).

Principal Banks in Mexico with Retail Operations:

• Bancomer (owned by BBVA of Spain)
• Banamex (owned by US banking giant Citigroup)
• Banco Santander (part-owned by Bank of America)
• HSBC (Formerly Bital)
• Scotiabank (Formerly Inverlat)
• Banorte (Mexican-owned bank)

See Also: Complete Guide to Banks, Banking and Credit in Mexico

Using ATMs in Mexico

Cash Machines (ATMs) are now widespread in Mexico. They are almost always open, very reliable and will dish out Mexican pesos to anyone with a card connected to one of the global networks, like VISA, MasterCard, American Express, etc.

Exchange rates are generally favorable, as you tend to get the "wholesale bank rate" (or very close to it) instead of the tourist rate, which can be quite different (not in your favor), although other service charges do apply (see below).

ATMs are by far the quickest and most efficient way to get access to local currency in Mexico.

Charges for ATM Usage in Mexico

As a guide, banks charge up to 2% of the transaction value when you withdraw cash from ATMs in Mexico from savings and current accounts. This percentage can be more for cash-advances drawn down from credit cards. In addition to the above, some banks also make a "foreign exchange charge" which can be up to 3% of the transaction value.

Note About UK-Issued 'Switch' Cards

If you live in the UK and use a 'Switch' card, note that most 'Switch' cards issued in the UK will NOT work in Mexican cash machines, and commercial outlets will not accept them either. Your card should display one of the international logos like Visa (Delta) or MasterCard, etc. Check with your bank before traveling if you plan to use a 'Switch' card in Mexico.

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Exchanging Money in Mexico

All main towns and cities have institutions willing to exchange your foreign notes and traveler's cheques into Mexican pesos.

Most exchange houses and banks do not charge commissions to exchange currency, but make money through the spreads - the difference between the rate at which they sell pesos and the rate at which they buy them. The spread is usually larger for money orders than travelers' checks or cash. In tourist hot spots, where there are plenty of exchange houses, it's worth checking several to see who is offering the best rate.

Check our Currency Exchange Table. The wholesale price quoted on this live currency converter should give you an approximation of what the retail rate should be (a new window will open when you click the link).

Where to Exchange Money and Currencies in Mexico

Retail banks, currency exchange houses, certain stores and hotels are the most common places where foreign currencies may be traded in Mexico.

Exchanging Money at Retail Banks

Although you will have no trouble finding a major bank in Mexico's towns and cities, most of them are NOT "foreign exchange friendly"; the procedures and time it takes to exchange foreign cash and traveler's cheques at a bank are considerably more cumbersome than doing the same thing at an exchange house (casa de cambio) -- see Exchanging Money at a Casa de Cambio, below.

Some banks will only exchange foreign currency if you have a local bank account; others have limited time windows during the day when they will transact foreign currency exchange. Most of them will make you line up twice to cash traveler's cheques: once to have the check authorized and again at the cashier's desk to get your money. Lines at Mexican banks can often be very long and you can expect to spend at least 45 minutes exchanging a traveler's check at a bank in Mexico.

Some banks have a "foreign exchange" window, or annexe room next to the bank's main lobby, which makes the process of money exchange (including traveler's cheques) quick and efficient because they operate in much the same way as Bureaus de Change operate-- but not all banks offer this facility.

Exchanging Money at a Casa de Cambio

Look for the words "Casa de Cambio", although the signs are invariably in English, too. Rates are often favorable, sometimes better than those offered at banks—check the competition locally, as different exchange houses and banks' rates will differ depending on the institutions' need for different foreign currencies. Some exchange houses have shorter opening hours than the banks, although in recent times they have been extending their operating hours to compete more effectively.

Exchanging Money at Mexico City's Airport

If you are arriving to or departing from Mexico City's international airport, and you need to change money on arrival, or sell pesos as you leave, you will find rates here are among the most competitive in the country, and rates are similar to those offered at downtown exchange houses. There are many exchange booths at the airport, both on the "air side" and the "land side," so you don't have to use the first one you see.

Blog Article: Curious Currency Spreads

Currency Exchange at Stores in Mexico

Certain stores, for example Wal-Mart stores and some of the larger department stores in Mexico will accept US Dollars as well as Mexican Pesos. The cash registers automatically convert the total at the day's 'house' rate: that is, the rate which the store is offering for receipt of payment in US Dollars. Note that they do not accept Canadian Dollars, Euros or Pounds Sterling. If you're aware of that day's exchange rate and good with math, you may be able to calculate how good or bad the exchange offer is when the 'converted amount' flashes up on the cash register. If the store does not have sufficient US Dollars in the register you will be offered change in Mexican Pesos.

Currency Exchange at Hotels in Mexico

Many hotels in Mexico offer currency exchange but, as with hotels worldwide, the rates tend to be unattractive in comparison with exchange houses and banks—both in exchange for cash and in settlement of the account. We recommend that you use hotels as a last resort for money exchange.

Currencies Traded in Mexico

Mexican banks and exchange houses will buy and sell all major currencies. US Dollars, Canadian Dollars, Pounds Sterling, Euros, Australian Dollars and Yen can be readily sold across the counter at exchange houses and many banks.

Money-Saving Tip! There is no point in buying US Dollars for exchange in Mexico if your home currency is the Canadian Dollar, Pound Sterling, Euro or Yen, as it will involve an additional exchange transaction (extra cost) before getting your Mexican Pesos. Just take your Canadian Dollars, Pounds, Euros or Yen with you in cash and/or traveler's cheques—exchanging them directly into Mexican Pesos will be straightforward and you will get a decent rate in exchange for them.

Blog Article : A Fair Exchange

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Money Transfers

Transferring Money To and From Mexico

If you find yourself in Mexico and need to wire money back home, or if you need money wired to you in Mexico, a network of agencies who specialize in doing just that are established in Mexico. You can also consider wiring money to accounts in Mexico using electronic funds transfer services, provided via the Internet.

How over-the-counter money transfer works

If you are transferring relatively small sums and want to use over-the-counter money transfer services, here's the general process:

The person sending you money goes to their nearest agency and makes the payment plus associated charges, telling their local branch what city the money should be sent to. The money is wired to that city and, to claim it, the recipient goes to an establishment that represents the agency (e.g. Western Union), shows a photo identification and claims the transferred amount.

To send money from Mexico to a destination overseas, it's the same process in reverse.

Electronic Money Transfers to Mexico

When the amounts involved are larger, for example when you are purchasing a home or other "big ticket" item in Mexico, or when you are making regular payments, the over-the-counter option will not work. Fortunately, with the advent of internet banking and finance services, specialized companies now exist that offer the capability of transferring money between banks electronically from one country to another using internet-based systems.

These services offer fast and secure money transfer from one bank acount to another and offer better exchange rates and lower tansaction charges than over-the-counter money transfer transfer services as their operational costs are lower.

If you have a bank account in Mexico--or if someone you with a bank account in Mexico needs you to transfer money to them--these international money transfer services can offer very good value for money and expedite the funds much more quickly than sending checks, which need to be negotiated by the foreign bank before they can be cleared--a process that can take days or weeks.

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Money Safety in Mexico

Storing Cash and Traveler's Cheques

If you've taken traveler's cheques for emergency use only, and have cash that you don't need all at once, then leave these at your hotel when you're out and about—preferably at the hotel's safety deposit box ("caja fuerte").

Most of the better hotels in Mexico now provide safes in each room. These safes are secured inside the room (usually in one of the cupboards) and you can choose your own PIN to lock the safe's door.

If your hotel has no safety deposit box, and there is no safe in your room, you will need to decide whether it is best to take them with you or keep them somewhere in your room. Remember that if traveler's cheques are lost or stolen, they can be canceled and replaced, usually within 24 hours.

ATM Lobbies in Mexico

Most cash machines (ATMs) in Mexico are in small lobbies. In days past, you had to swipe your bank card to enter; however, due to scammers using this feature to clone cards, the banks have removed the need to swipe your card to enter the lobby. If you see a card swipe/reader at the lobby door of an ATM in Mexico, DO NOT swipe your card through it. Doing so may cause your card's details to be copied and compromised by frauds.

It is local custom to wait outside until the lobby is free, or if there are two or three cash machines available inside, until the next one becomes available for use.

Withdraw Cash During the Daytime

Try to use cash machines in daylight hours, at times when there are other people around—especially so in Mexico City. Be mindful of anything that may look suspicious near the vicinity of the cash machine, and if you are in doubt—wait, or find another cash machine.

Withdrawing money from cash machines at night, at hours when there are few or no people around is not recommended, especially in Mexico City. Use common sense, as you would back home, and you should have no problems using ATMs in Mexico.

Armed Police at Banks

You may see armed police standing outside banks and ATMs when they are being refilled. Don't be alarmed, this is quite a normal practice throughout Mexico.

Dress Down

If you're on a sight-seeing tour or walk-about, don't walk around dripping jewelry and cash. Take only as much money as you think you'll need for the activities you plan. If you see something you want to buy and don't have the cash on your person, a small deposit will always secure it. You may return later or ask for the item to be delivered to your hotel.

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Prices in Mexico

If you are planning to travel through Mexico on business or for pleasure, or if you are thinking about living in Mexico, or investing in real estate here, it may be useful for you to compare the cost of things in your home country with those currently being charged in Mexico.

Our Mexico Price Index is updated regularly; and immediately if there is a significant change in local economic circumstances.

Prices are given in Mexican Pesos and you can do conversions to your home currency using the Live Currency Converter links provided on the list.

Cost of Living in Mexico: See the latest Mexico Price Index*

*Please Note: Our Price Index is only available to registered users. Registration is Free. If you are not registered, you will be able to register by clicking the link to the Price Index (above) and following registration, you'll be automatically redirected to the Price Index Page.

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Blogs Related to Money & Economy in Mexico

Read the blogs on Mexperience for contemporary reviews and comments about matters relating to money and the economy in Mexico

Mexico Insight

Mexico Insight covers a diverse range of subjects sharing local knowledge for travel, leisure, living, working, real estate, retirement, lifestyle and culture in Mexico.

• Mexico Insight Blogs: Money in Mexico

Foreign Native

Foreign Native shares unique perspectives about modern-day Mexico including language, history, culture, economy and insights on topical issues related to Mexico.

• Foreign Native: Blogs About the Mexican Economy

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