![]() ![]() The peso got off to a good start in 2020, with the wholesale exchange rate trading down to around $18.50 pesos to the dollar in mid-February. Other sources of dollar income -including international travelers and remittances from Mexicans abroad- increased despite the economic stagnation in Mexico, and the trade balance was positive, i.e., Mexico exported more goods than in imported. The Bank of Mexico started cutting interest rates, but these remain relatively high and encourage buying of peso-denominated government bonds by investors seeking returns on their money. Tax revenue was less than expected because the economy didn’t grow. The government made efforts to keep to its budget deficit targets, even when this meant holding back some spending to avoid having to take on new debt. Several things helped to make the peso one of the best-performing currencies against the US dollar in 2019. The average daily exchange rate in 2019 was $19.26 pesos to the dollar, compared with an average daily exchange rate of $19.24 in 2018: when measured using a daily average, data show that Mexico’s pesos has remained remarkably stable over the last 24 months. The exchange rate at the end of 2019 closed at $18.90 pesos per dollar when in 2018 it closed at $19.66. The lowest the dollar fell against the peso was about $18.75, and the highest rate was $20.15 pesos per dollar, making it the smallest range between minimum and maximum rates in 10 years. The peso-dollar exchange rate remained reasonably stable in 2019, despite a lack of economic growth and a lot of noise in the news about the financial difficulties of the state-owned oil company Pemex, which could also cause problems for the government’s international credit ratings. Mexico’s peso is a free-floating currency on world foreign exchange markets it’s among the world’s top-10 most-traded currencies, and is the most-traded of Latin America’s currencies. As a rule, only plan to use your ATM card when you need to withdraw cash.In recent years, one of the hardest things to predict has been the Mexican peso/US dollar exchange rate. Another thing to keep in mind is that it is always better to keep cash on hand because so many places don't accept plastic, especially places like the flea market. For Canadians, you will find there are HSBC and Scotiabanks. An example, CitiBank in the States has an affiliate called Banamex and Bank of America with Santander. Some banks have Mexican affiliates that won't charge you to use the ATM. ![]() Sometimes the ATM will give you the best rate of exchange but you will get tagged with big fees. Unless you want to carry your passport past the hotel lobby doors, it’s best to change before you go out and about. Be sure to remember that you will need your passport to change money at a bank or casa de cambio. There are several places around town where you can change currency and the rates are posted outside of the establishment. You don't want to be stuck with a lot of pesos at the end of your trip because it will cost you more to buy back your original currency. ![]() It's a good idea to change your home currency to pesos in increments. You can make a currency exchange before you leave the airport in Cancun or at your hotel when you arrive. ![]()
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