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The time has finally arrived – you’ve booked your flights, read through all of the Mexico posts on this blog and now you’re ready for your trip to Mexico. But wait… What currency is best to use in Mexico?
In fact, what currency does Mexico even use?
Luckily, Mexican currency is very easy to understand.
In this guide I’m going to share everything you need to know about money and currency in Mexico before your trip, so that you can enjoy your vacation stress-free.
Let’s go!
What Currency Does Mexico Use?
The local currency in Mexico is the Mexican Peso (MXN). This can sometimes surprise US travellers who expect that they can just use their US Dollars in Mexico. You can indeed do this, sometimes, but that’s something we’re going to discuss later in this post!
The symbol for the Mexican Peso is the dollar sign ($), so this can be confusing, but it will be very easy for you to tell that the price is in Mexican pesos, not US Dollars. This is because, for example, a beer at a bar in Mexico may cost $25, and it would be insane if you thought that price was in dollars instead of pesos!
One peso isn’t the smallest denomination of Mexican currency. Each peso is split into 100 centavos, which are represented by the ¢ symbol.
Can You Use US Dollars in Mexico?
In many of the super-touristy areas of Mexico, such as Puerto Vallarta, Tulum, and Cancun, you’ll often see prices listed in US Dollars. Here, you can pay at most places (bars, restaurants, hotels etc.) in US Dollars, except for things like grocery stores.
If you’re visiting areas in Mexico that aren’t swamped with US tourists, though, you’ll have to pay using the Mexican Peso. Many typical Mexican towns and cities do not accept US Dollars.
Even if you do visit a place that has prices in US Dollars, it is almost always better to pay in Mexican Pesos as you’ll usually get a slightly better deal.
Can I Get Mexican Pesos in the US/U.K., Etc?
Mexican pesos are very easy to get your hands on in the US, U.K. and other other countries. You’ll find Mexican currency at most currency exchange counters in Europe, and pretty much every currency exchange counter in the US.
Usually my favourite method for getting a local currency is to use a travel credit or debit card (I use a debit card with Starling Bank) to withdraw the local currency on arrival at an ATM at the airport. That way, I always get a good conversion rate. Plus, with a travel card you won’t get charged any conversion fees.
However, in Mexico this method proved tricky. Most ATMs in Mexico charge a withdrawal fee of around 50 MXN ($2.50 USD) per transaction.
For this reason, I recommend exchanging a decent amount of your spending money into Mexican Pesos before you arrive in Mexico. Then, each time you go to the ATM, try to withdraw as much cash as you can to make the most of the withdrawal fee.
Another option is to bring your own currency in cash to Mexico and exchange it once you arrive. this usually gets you a slightly better exchange rate. Of course, though, that’s an extra thing to put on your arrival to-do list, so it might be worth exchanging your currency beforehand for the extra convenience.
What is the Mexico Exchange Rate for US Dollars/Euros/Pounds, etc?
At the time of writing, one peso is approximately $0.05 and €0.05. Because of this, it’s pretty simple to work out how much things cost. If you’re thinking in Euros or Dollars, 20 pesos is one Dollar or Euro.
Currently one peso is approximately £0.04, which is where things get a little bit more complicated. one British Pound is around 23 pesos.
If you’re trying to work out the price of things in Mexico in pounds I recommend downloading the XE currency app. You can download the Mexican currency calculator, and then you can simply enter the amount of pesos or pounds and it will convert the amount automatically.
Money in Mexico
When it comes to cash in Mexico you’ll use both notes and coins. Notes come in denominations of 20, 50, 100, 200, 500 and 1,000 pesos, although I didn’t come across any 1,000 peso notes during my 6 weeks in Mexico.
If you get any 500 or 200 peso notes I recommend breaking these up as soon as you can so that you have change. Some places won’t accept payment in 200 or 500 peso denominations because they don’t have enough change available.
Mexican coins come in denominations of 1, 2, 5, 10 and 20 pesos, as well as (supposedly) 5, 10, 20 and 50 centavos. Centavo coins are quite rare, though – I only came across one in my entire six weeks in Mexico.
Often, if a price is not a whole number, for example if something costs 12.5 pesos, the amount will just be rounded to the nearest whole peso. Places either don’t have change for the centavos or don’t think it’s worth giving it to you. It’s no big deal.
It’s important to keep an eye on your coins and try to pay with them as often as possible. It’s harder to convert coins back to your own currency at the end of your trip.
Do I Need Cash in Mexico?
I was actually surprised by how cash-based some areas of Mexico are. Outside the more metropolitan areas (Mexico City, for example, has lots of places that accept card) you’ll struggle to get by without cash.
In Mexico, it’s rare for taxi cabs to take card payments. Many museums, local restaurants and bars also don’t accept cards. If you’re staying in hostels or guesthouses it’s even common to have to pay for your accommodation in cash.
How Much Money Will I Need to Budget for Mexico?
How much money you will need to budget for a vacation to Mexico depends a lot on your travel style and. It also depends on where you’re going in Mexico. Mexico is a huge country, and prices vary a lot from place to place.
The cost of travel in Puerto Vallarta, Tulum, Cancun and Baja California will be much higher than, for example, San Cristóbal de las Casas.
To get a better idea of how much money to take to Mexico, Budget Your Trip is a great website. It shows the average price of things like groceries, taxis and accommodation so you can work out how much you should budget for your trip to Mexico!
I hope this post helped you feel more confident about what currency is used in Mexico! In summary – the Mexican Peso is the currency to use in Mexico, and you can’t US Dollars outside of the tourist zones.