Mexico limits the amount of US cash foreigners can exchange

It is not always possible to exchange Canadian dollars for pesos outside major tourist areas in Mexico, so I always advise Canadians to take mostly US funds with them. Consequently, a recent announcement by the Mexican government about modifications to the exchange rules for US dollars could affect Canadian travellers.

As of September 14, 2010, foreigners are not allowed to exchange more than US$1500 cash per month into pesos. Fortunately, this limit does not apply to purchases and ATM withdrawals made with credit and debit cards. This may seem like an odd move for Mexico to make given that the country relies so heavily on tourism. But the purpose behind it is to limit the number of US dollars entering the Mexican banking system.

So make sure to take credit and debit cards along on your next trip to Mexico. Also ensure that your PIN numbers are made up of four digits. ATM's in Mexico will not accept PIN numbers with more than four digits. It's also wise to avoid using letters in your PIN numbers as they will make transactions more cumbersome.

N.B. As yet there is no mention of whether or not traveller's cheques will be considered to be a form of cash. I will update this post when I have that information.