Do I need pesos?

[ReefHound]

Yes, tourist-facing businesses accept US dollars (and some accept Canadian dollars and euros) to make it easy for the visiting tourist to spend money.

Every dive op I have asked has explicitly said they would prefer to be paid in cash and prefer the cash to be dollars. They also price their services in dollars. My rule is if the price is posted in pesos I pay in pesos, if the price is posted in dollars I pay in dollars. Because if it is priced in dollars they are going to get that number of dollars and if they have to convert pesos they are never going to use a conversion rate in your favor.

 

[BoundForElsewhere]

Every dive op I have asked has explicitly said they would prefer to be paid in cash and prefer the cash to be dollars. They also price their services in dollars. My rule is if the price is posted in pesos I pay in pesos, if the price is posted in dollars I pay in dollars. Because if it is priced in dollars they are going to get that number of dollars and if they have to convert pesos they are never going to use a conversion rate in your favor.

That's true about some of the dive shops anywhere in Mexico. Maybe some of those dollars aren't staying in Mexico and getting reported?

Please don't bring your wrath down on me Dave and Christi. I'm only speculating.

 

[BrewingDiver]

Except for the vendors that regularly exchange dollars with others (example, dive shops/charters), locals would also have to pay a bit to exchange their dollars into pesos at some point. They are either paying a little more for goods and services to buy in dollars, or exchanging them for pesos at a bank and giving something to the bank. It seems like for most, then, pesos would be preferred.

As someone said, Mega gives close to the real spot rate on dollars, which allows vendors dealing regularly with foreigners to shop there without getting hit hard on the conversion.

 

[Christi]

With new tax laws it will cost everyone more to accept USD in Mexico so it’s not true that people prefer dollars to pesos.

I would recommend tipping in pesos going forward just be sure you’re using the right exchange rate - in other words, 100 pesos is NOT $10usd - it’s more like $6usd

 

[Christi]

That's true about some of the dive shops anywhere in Mexico. Maybe some of those dollars aren't staying in Mexico and getting reported?

Please don't bring your wrath down on me Dave and Christi. I'm only speculating.

Actually with the new tax laws we will be taxed MORE on USD cash now- so you’re not at all off base.

 

[BoundForElsewhere]

Personally, I think it's a matter of respect, too. I've literally seen Americans get angry at people for not speaking English. Or how about the habit of talking louder when they are not understood. Hilarious. It bothers me when people feel their culture, language and lifestyle travels with them.

We are guests. Yes, paying guests, but visitors none the less. Please show people and local life the respect they deserve. Hell, even learn a little Maya. Show that you care about where you are and not just a transposed entitled sunburn.

Sorry for the rant. I am just very sensitive about this issue. We are embassadors of sort when we travel. Try to make a good impression, please

 

[WetInPortland]

With new tax laws it will cost everyone more to accept USD in Mexico ...

In your copious free time ( ), could you give us a synopsis of what's changed?

 

[WetInPortland]

Every dive op I have asked has explicitly said they would prefer to be paid in cash and prefer the cash to be dollars. They also price their services in dollars. My rule is if the price is posted in pesos I pay in pesos, if the price is posted in dollars I pay in dollars. Because if it is priced in dollars they are going to get that number of dollars and if they have to convert pesos they are never going to use a conversion rate in your favor.

I agree that every dive shop advertises rates in dollars (Blue XTSea is one of the few that complies with the rules about posting an exchange rate), and I'll accept your research, but I still don't understand it. Surely payroll and taxes are paid in pesos? Fuel may fluctuate with the dollar (remember that OPEC uses the US dollar for its official pricing), but I doubt the operators are paying Pemex in anything other than pesos. Unless they're all independently wealthy ( ) and prefer to hold their earnings in what's perceived as a more stable currency.

The last time I dived with 3P, it seems they ran my credit card through a US Bank, so there was no currency conversion or foreign transaction fee. And maybe credit card processing fees are lower using a US bank. That still doesn't explain the preference for cash payments in dollars.

 

[Christi]

In your copious free time ( ), could you give us a synopsis of what's changed?

I'm still trying to understand it all myself. My Admin will be updating me next week - but next week I also start clinical internships AND work AND classes so yeh, that free time is going to go away! Haha!

One thing I do know for sure is that I used to use USD to pay my DM's trip pay (over and above their salary) in USD cash. We will no longer be doing that. The trip pay will be added to the "nomina" payroll so they will now be paying taxes on that money as well. While it will be in pesos, it will be at the equivalent USD rate since that is the basis in which they are paid.

As has always been true for businesses, individuals will no longer be able to deposit cash without accounting for it. Likewise, if they are driving new cars or have credit cards, the hacienda will be tracking if they are living above their declared income. I am probably not explaining this well, but they are BIG changes all around.

Don't expect pricing to go down based on the peso - our (everyone's) operating expenses are actually increasing and as you know, gas is about +/- $4.50usd a gallon and never goes down, it systematically increases every single month anywhere from 5 to 20 centavos/liter a month, which is significant. With fewer and fewer operating expenses being deductible if paid in cash, that means businesses that were trying to operate under the radar on a cash basis are in for a world of hurt with these new tax laws.

 

[yle]

With new tax laws it will cost everyone more to accept USD in Mexico so it’s not true that people prefer dollars to pesos.

I would recommend tipping in pesos going forward just be sure you’re using the right exchange rate - in other words, 100 pesos is NOT $10usd - it’s more like $6usd

Even $6 is too generous... at wholesale rates, 100 pesos is closer to $5.

Which means a $10 to $20 tip on a two-tank dive trip should be 200 to 400 pesos.