Canadian Money in Mexico

People often ask me whether it is better to use Canadian or U.S. funds in Mexico. Personally, I never take Canadian money. Outside of Mexico City and resort areas such as Mazatlan, Puerto Vallarta, and Cancun, Canadian dollars can be very difficult to exchange. On the other hand, U.S. dollars are welcome virtually everywhere. You can change them to pesos either at banks or casas de cambio (exhange booths). The latter may not give as good a rate as banks, but the difference is often minimal and you probably won't have to line up. Don't take 100-dollar bills since they can be difficult to change. Some places are also wary about accepting worn-looking or defaced bills. Be aware that hotels generally offer less than the official exchange rate ("tipo de cambio").

Traveller's cheques issued in U.S. dollars are a bit more of a hassle to use, but most banks and some private exchange outfits will cash them if you show your passport. Don't even think about taking traveller's cheques issued in Canadian funds. They aren't worth the paper they're printed on. Many travellers now prefer to get peso cash advances on their credit card or use a debit card. Check with your bank to find out what the associated fees are and if ATM's in Mexico will accept your current credit and/or debit cards. Also make sure that your PIN numbers are compatible with the Mexican banking system, which requires a four-digit PIN.

Last but not least, it is a good idea to let your banks know that you will be using your cards in Mexico. This will prevent them from thinking that someone might have stolen them and is abusing them abroad.