Currency in Cabo: Should You Use Pesos or US Dollars?

Money in Mexico: A Guide to Currency in Cabo

One of the most common questions we get from first-time visitors is about money: "Should I use Mexican pesos or are US dollars okay?" The short answer is that both are accepted in many places, but using pesos will almost always save you money. Let's break it down.

The Official Currency: The Mexican Peso (MXN)

The official currency of Mexico is the peso. Prices at local restaurants, grocery stores, and small shops will all be listed in pesos. While many tourist-focused businesses will accept US dollars, they do so at their own exchange rate, which is never in your favor.

The "Tourist" Exchange Rate vs. the Real Exchange Rate

• The Real Rate: This is the official bank rate that fluctuates daily. You can check it on Google or with an app like XE.com.
• The Tourist Rate: When you pay in USD at a shop or restaurant, they will convert the peso price to dollars using a convenient (for them) round number, like 20 pesos to 1 dollar, when the real rate might be 17 to 1. You end up overpaying on every transaction.

Rule of Thumb: If a price is listed in pesos, pay in pesos. If a price is listed in dollars (like for tours or some high-end restaurants), it's okay to pay in dollars.

How to Get Pesos: The Best and Worst Ways

The Best Way: A Bank ATM

The single best way to get pesos is to use your home debit card at a legitimate bank ATM in Mexico. ATMs are plentiful in San Jose del Cabo, found in grocery stores and banks.

• Which ATMs to Use: Stick to ATMs that are physically located inside a bank branch (like Banorte, Santander, Scotiabank, or CI Banco). Avoid standalone ATMs on the street.
• The Process: When you withdraw, the ATM will ask if you want to accept their conversion rate or decline it. **Always decline the conversion.** This forces your home bank to do the conversion at a much better rate. You will get a near-perfect exchange rate, only paying a small ATM fee.

The Okay Way: Ordering from Your Home Bank

You can order pesos from your bank at home before your trip. The rate won't be as good as an ATM in Mexico, but it's a safe and convenient option to arrive with some pesos in hand.

The Worst Way: Airport Exchange Kiosks

Never, ever exchange money at an airport kiosk (either in your home country or in Mexico). They offer the worst possible exchange rates and highest fees.

Using Credit Cards

Credit cards (Visa and Mastercard) are widely accepted at most established restaurants, larger stores, and tour operators. It's a great, secure way to pay. Before you leave home, make sure you have a card with no foreign transaction fees.

FAQ: Money in Cabo

Should I bring a lot of cash?
No. It's not necessary or safe to carry large amounts of cash. Bring a small amount of USD for tips on your arrival day, and then use an ATM to get pesos for your daily spending.

How much cash should I have on hand?
It's good to have the equivalent of $50-100 USD in pesos for small purchases at local spots, street carts, or for tipping.

Navigating money in a foreign country can be tricky, but a little knowledge goes a long way. As Your Trusted Friends in Baja, we want to make sure you get the most value and have a seamless experience from start to finish.