Know When to Exchange Currency for a
Mexican Vacation
By ForexTraders.com | Photos by Jesús de Avila • January 2010

Mexico the glorious land of mountains, beaches, deserts and jungles.

It’s easy to see why Mexico is one of the world’s most unique countries. Its rich culture and history, as well as the incredible mountain ranges, beaches and jungles add to the mystique and beauty of this North American treasure chest, plus it’s home for 12% of the world’s biodiversity. Mexico has 84 national parks, 17 sanctuaries for diverse species, 26 protected flora and fauna areas and forests and hydrological basins that are preserved and valued for their diversity.

The people, cuisine, geography and history of Mexico continue to help the world define itself in the 21st century even though the country is going through a period of economic, social and political challenges. According to the World Tourist Organization, Mexico is the 7th most popular country in the world to visit thanks to its costal climate, spectacular beach resorts and its fascinating culture. Tourism is the second best revenue producing industry in Mexico; the crude oil industry still has the number one spot.

Do a little currency research before your trip

In order to appreciate what Mexico has to offer, it’s important to put a travel budget together in Mexican Pesos. Mexico’s economy has taken a beating recently because 80 to 85% of its exports go to the United States and that economy continues to be immersed in economic reform and currency value issues. Mexico’s GDP is down by over 10% because tourism is suffering and the country is experiencing declining tax and oil revenues, plus there has been an increase in violence in some of the larger cities.

All of those factors have an impact on the Mexican currency exchange market, so waiting until you arrive in Puerto Vallarta or Riviera Nayarit to trade currencies can cost you money. The Peso is always fluctuating in value but now, more than ever, exchanging money with banks, credit card companies, airport merchants and hotels is expensive. If you want to save money when you exchange currency, do a little research on the Internet. There are currency conversion sites available that can give you an idea of how many pesos you’ll receive when you make an exchange. These sites, as well as banks and credit card companies can charge high transaction fees, so don’t exchange any currency until you talk to a professional currency broker. A professional broker watches the currency market 24/7 and will help develop a currency exchange strategy that fits your budget.

What do currency brokers do?

A currency broker will offer you an exchange rate without hidden fees or surcharges, which are the standard charges that banks, credit cards, airport merchants and hotels use to make a profit. A broker will give you a real time exchange rate and will help you average your exchanges while you’re planning the trip, so you avoid sudden value surges that can destroy your budget. A broker does make a profit, but saves you money in transaction fees and surcharges. You know exactly what each exchange costs, so your budget is more realistic.

Other travel tips
You can carry up to ten thousand dollars in cash through Mexican customs, if you have more than that amount you must declare it, or it could be confiscated. Always carry cash in a leg pouch, hidden pocket or money belt that’s secure and out of sight and use hotel safes when you reach your destination. Follow local security tips and use common sense. It’s your best security tool when you use it. Email to a friend

Andrew Carter
ForexTraders.com

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