Taxi Mafia

[judydivescoz]

See, I've always thought by me paying merchants in Mex in dollars I was actually doing them a favor. That they could work the fluctuating exchange rate and actually make MORE pesos that way

when paid in US dollars most have to go to the Cambio and exchange for pesos. Most can't wait for a more favorable exchange rate to be paid. That rate is always much less than the rate I get at the ATM when I get pesos. Not much of a favor on your part.

 

[Sideways]

when paid in US dollars most have to go to the Cambio and exchange for pesos. Most can't wait for a more favorable exchange rate to be paid. That rate is always much less than the rate I get at the ATM when I get pesos. Not much of a favor on your part.

So.... if they ask for $5 or 50 pesos it's not a favor giving them $5??? Which seems to be the usual conversion I get in this situation (10x)
Maybe I'm using fuzzy math here...

 

[John Larsen]

So.... if they ask for $5 or 50 pesos it's not a favor giving them $5??? Which seems to be the usual conversion I get in this situation (10x)
Maybe I'm using fuzzy math here...

The way I see it if you pay with a US $5 for a 50 peso ride you have been over charged or left a more than a generous tip for a taxi driver of 10 pesos (give or take du to the current rate) ....I think Im using the same fuzzy calculator !

 

[njones259]

Isn't it time we picked a new subject to beat to death?

 

[DandyDon]

The way I see it if you pay with a US $5 for a 50 peso ride you have been over charged or left a more than a generous tip for a taxi driver of 10 pesos (give or take du to the current rate) ....I think Im using the same fuzzy calculator !

I understand the feeling, felt it myself, but no - the driver who gets the dollars has to go to the trouble and expense of converting to Peso himself, and until he does - he has to keep up with both collections of currency. Today, google allows 12.81 pesos/dollar. Paying 28% extra for him to do the exchange instead of you or me is a judgement call. If that's too much, get local currency. When I toured Ireland or The Netherlands, I did not try to spend US Dollars as they won't take them. They are doing us a courtesy to accept our dollars, at their rates.

As far as haggling/dickering, it usually doesn't hurt to ask politely? "Would you consider less?" I've done it on many things here locally, larger ticket items where they accept credit cards for example - and I have cash to offer. When in doubt, just say you don't want to spend that much and see what happens. If they offer a lower price, game on!

There are some good discussions at How to haggle - Wikitravel

and https://en.wikipedia.org/wiki/Bargaining

 

[Christi]

Refreshing and spot on response Don

I'll only add this - and then I am done - I don't have time to cover every single base - I'm diving this afternoon (and have been diving almost everyday

With new currency/tax laws - locals (citizens and residents) can only exchange a certain amount of dollars per month now without being taxed on it - whether exchanging or depositing (if they have a USD account here - which only corporations can have). And yes, before anyone says otherwise, it IS tracked. We (locals/residents and citizens of MX) must present an ID and get a registration card in order to exchange money at the change houses. In order to change money, we must present this ID card. The teller enters our ID number and amount exchanged into a computer system that is reported to the MX Treasury department.

If depositing into a business account, an additional tax (on top of the 11% IVA) is levied after $1500 USD per month

 

[judydivescoz]

Thank you Christi for adding the tax ramifications of accepting dollars for the taxi drivers as wellas other businesses in Cozumel. Along with the other costs of exchanging dollars into pesos might clarify the " fuzzy math" for some.

 

[Sideways]

I did not know about the tax laws. I am curious though, why I have been told before by locals in many resort areas of Mexico that they prefered dollars over pesos? Is this a new law?

 

[Mike]

I did not know about the tax laws. I am curious though, why I have been told before by locals in many resort areas of Mexico that they prefered dollars over pesos? Is this a new law?

That's obviously a complete fabrication by some local trying to throw you off the scent.

Apparently, you're not aware Mexican's weren't allowed to spend US dollars and must deposit them all in a bank or convert them all to Pesos at an exchange in order to buy anything. It's obviously a new law that Mexicans can accept US dollars but cannot spend them.

Funny country, you can't flush toilet paper down the toilets, they can't make change in their own currency half the time, you can't drink the water, and yet for all that they have some of the most strict and structured money systems in the world where apparently the entire population has business banking accounts and runs all their cash through banks, who would have thought it? They operate in the largest cash economy on the planet but they do everything through banks! Wow.

 

[njones259]

I have been behind many mexican locals buying groceries on 30th with dollars.Have also been to the cambio on 30th and watched plenty of locals change dollars into pesos with no ID.