Best place to exchange Dollars for Pesos?

[John Larsen]

Been going to Coz for 15 years and have always used US dollors to pay for everything..But after reading a few post about Pesos VS the Dollor I think I will try using Pesos this trip next week...Is there any one place better then another to exchange ? or is Mega the best option ?

 

[crosshairs]

This is from the sticky posted by Christi

Should I use dollars or pesos?

I DO NOT recommend converting dollars to pesos at the airport in the states before you get here...you will definitely get a lower exchange rate (i.e.: 9 pesos to the dollar vs. 10.7 pesos to the dollar). I do recommend changing some dollars to pesos once on the island however, as you will get a better exchange rate that way. Although everyone will take dollars, the exchange rate in most places is at a set rate, and it will always be higher then the banks and change house rates. For example, they will have a set rate of 10.5, when the real exchange rate is 10.35. On $100 that costs you an extra $1.50. While it may only be a few dollars here and there, that does add up over the week. So, it is always best to pay for your meals in pesos, hotel in pesos, and souvenirs in pesos. Most dive shops I know of, will give you the real exchange rate for whatever it is that day on the island.

There are change houses ALL over the place and they are almost all owned by the same person, so no need to shop around for a change house with the best rate...they are virtually all the same. The banks typically offer a slightly better rate than the change houses, but be prepared to stand in line forever. Still, the exchange rate is usually a point or two lower than the actual market rate on Wall Street.

Another tip is to purchase something with dollars at Mega or Chedraui (grocery stores) as they have the best exchange rates. They may have a limit as to how much they will exchange for you however.

 

[Zman96]

Or you could use the ATM and withdraw pesos that way. Make sure you use bank owned ATM's not the free standing ones around the square. I use the one on 5th across from Wet Wendy's or the atm's at Mega.

 

[DjDiverDan]

I've never tried either Mega or Chedraui, nor have I ever used an ATM on Cozumel, Bank or otherwise. But generally the Banks offer better rates than any of the Cambios. I usually check the rates posted on the windows or doors of the three Banks on or closest to the main Plaza, and exchange at the one with the highest Peso to Dollar rate - the "Buy" rate is the rate at which the Banks are "buying" dollars. My experience over the last several trips, since 2010, has been that ScotiaBank, at the end of the Pedestrian walkway heading north from the back of the Plaza has had the best rate of those three, so I usually exchange $500 as early in my trip as I can. I don't worry about ending up with too many Pesos, as I just assume that I can use them when I return to Cozumel again (I have about 380 Pesos in my dive wallet right now, which I hope to be able to spend in December). Please note that when exchanging at a bank, the bank is required to examine your Passport, so take that with you when you go for the exchange. I normally leave my Passport in the hotel safe for the remainder of the trip.

Before making any special trip to the Plaza to exchange currency, check the exchange rate offered by your hotel. It almost certainly won't be as good as what is being offered by the Banks, but the difference, even on an exchange of $500, will be far less than what it might cost you in cab fares to make a special trip to Centro to exchange currency if you are staying in the North Hotel Zone or at Casa Del Mar, La Cieba, or any of the Resorts to the South. Only make the trip if you were going to the Plaza anyway. Similarly, if you make it your practice to load up on beer and goodies at Mega or Chedruai early in your trip, you might as well exchange money there - you may not get as good a rate as at the Banks, but what you forego in extra Pesos, you'll more than make up for in time and cab fares.

If you run short of Pesos, most of the Cambios around the Plaza offer decent exchange rates, as do many of the hotels - not as good as the Banks, but if you are only exchanging $20-$50, the difference will not be nearly enough to make a real difference or justify a special trip back to the bank.

 

[tomhooper]

I actually got a better rate at the Cambio across from HBSC on the square. Bank was giving 11.47 and Cambio was at 11.80. That was yesterday.

 

[Ripple in still water]

So as of today, Google tells me that a dollar equals 12.87 pesos. That mean the referenced bank and cambio takes about 10% off the top. Is there anyplace on the island to get something close to the "actual" exchange rate?

 

[DjDiverDan]

That strikes me as pretty unusual, but when it happens, take advantage. The difference in rates allows me to demonstrate my point: for every $1.00 exchanged at 11.80 vs. the 11.47 rate offered by the Bank, you gain 0.33 Pesos. So, on a $200 exchange, you would gain 66 Pesos, or a little less than $6.00. On a $500 exchange, you gain 165 Pesos, or about $15.00. A spread of only 0.15 Pesos cuts that gain by more than half. So, if you are staying at, say Casa Del Mar, and it it offering 11.35 Pesos per Dollar, making a special trip to the Banks downtown to get an exchange rate of 11.50 Pesos per Dollar for $500 will cost you about $14 (160 Pesos at 11.5 to the dollar) or $16 (if you pay the Cabs in Dollars) for the round trip to get an extra $6.00 worth of Pesos. Even at a spread of 0.35 Pesos, the extra cost of the cab rides wipes out nearly all your gains from the better exchange rate. So don't waste time hunting down the very best exchange rates if you are going out of your way - taking a slightly worse exchange rate may well be the most economical decision. I exchange at the Banks only because I'm going down that way anyway; I would never make a special trip for that, because it is usually just not worth the extra time and expense.

---------- Post added June 19th, 2013 at 10:59 AM ----------

Ripple, the exchange rates you'll find on the internet are for big Banks exchanging tens of millions of dollars in Pesos. You won't ever get anything close to that exchanging Pesos in amounts that tourists deal in. A spread of anywhere from 8% to 12% is pretty standard, and the more volatile currency markets are, the higher the spread will be, as Banks and Cambios will face higher risks that the value of the Dollar drops before they can exchange those Dollars back into Pesos. About the best I've ever done in exchanging cash is a spread of 6-7%. When the value of the Dollar is unsteady or dropping, as it has been recently (what do you expect when the Fed is printing money out of nothing to buy $85 BILLION in Federal debt every month?), expect spreads to widen.

SOMETIMES, you can get close to the official exchange rate by using a credit card -- in years past, American Express was about the best bet, since it dealt in such huge amounts of foreign currency transactions. Bank Cards are generally still going to extract the same spread on credit card transactions as the do on small volume currency transactions. Bank of America, for example, typically extracts a spread of as high as 15-18%. So you are better off exchanging in Cozumel, and paying in Pesos.

 

[Christi]

This is from the sticky posted by Christi

OK - I see another thing I need to update ! Mega will no longer allow you to buy something like a pack of gum with $100 and give you change in pesos. If you pay in dollars, they will most likely give you dollars as change unless it's a small amount.

The BEST way to get the best exchange rate is to use your ATM and take out at a BANK owned ATM - NOT the free standing "Cashola" machines.

Most banks will no longer change dollars for you unless you are an account holder - this has to do with new tax laws here regarding cash and USD. Even for locals, there is now a monthly limit on how much we can exchange each month. As well, deposits of over $1500 USD per month have a new tax - so don't count on any individuals to be willing to exchange money either, unless they are heading back to the states.

If you are a Bank of America account holder, you can use the ATM at Santander on the corner of Av. 10 and Calle 3 with no fees. Otherwise, use an ATM in a bank lobby/vestibule and you will be safe. Fees charged by the bank ATM's will be no more than $20 pesos (don't confuse the $ - it's is also the sign for pesos) - fees charged by your bank may vary - but the MX Bank ATM fees are a max of $20 pesos.

There are also change houses all up and down 30th Av. - you will need your passport. The current exchange rate is between 11.8 and 12.0

---------- Post added June 19th, 2013 at 01:12 PM ----------

So as of today, Google tells me that a dollar equals 12.87 pesos. That mean the referenced bank and cambio takes about 10% off the top. Is there anyplace on the island to get something close to the "actual" exchange rate?

You need to understand that the change houses are businesses - this is how they make their money. You are paying for a convenience. They can actually set whatever exchange rate they wish - check out the exchange rates at your bank back home to buy pesos before coming down - you will pay a lot more for them!

---------- Post added June 19th, 2013 at 01:17 PM ----------

I actually got a better rate at the Cambio across from HBSC on the square. Bank was giving 11.47 and Cambio was at 11.80. That was yesterday.

Don't confuse the "buy" rate vs. the "Sell" rate. If you are exchanging USD for pesos, then you are buying pesos.

 

[Brules]

I usually use my hotel but they limit daily exchanges to $100 - I wonder if the new laws have affected or changed that?

Can anyone explain the new laws?

 

[Dave Dillehay]

C I Banco at Calle 11 and Avenida 65. Easy parking, clean and efficient, and never a line. As good of an exchange rate as you will find and ATMs as well.

BTW most US Credit cards have a foreign exchange fee that can be onerous (especially AmEx). Capital One and Chase United Explorer cards don't.