arrgggg....currency exchange

dgk · 12-24-2005

In preparing for our trip, we exchanged USD for pesos. Since I'm buying food and bev for eight, I wanted pesos in my pocket before I got to Mexico. I know we can use the ATM and I plan to, but I felt the need to make sure we have some pesos in case all you peeps drained the ATMs dry.

So.....I assumed I would get a decent rate from our bank before we left. My wife exchanged $1,000.00 (actually 999.92) and got 9,910.00 in pesos. Big diff from what I expected. I expected 10,676 or there about. They said the rate for the day was 10.09. The exchange rate caluculator for the day that I used said 10.67. Does the bank work on such a large spread? And if the rate was 10.09, we should have received 10,089 pesos. Or am I missing something?

My question to them on Tuesday will be.....If I give you back 9,910 pesos, how many USDs will I get back?

SarahB · 12-24-2005

I'm not 100% sure, but I think there is one official rate. Some differences come in when places add a commisson to their rate and also when there is a buy rate versus a sell back rate. If you are in Mexico and trade in pesos for dollars (sell your pesos back before you leave) the rate is worse than if you are exchanging dollars for pesos. Maybe it's something like that since you traded the local currency for foreign. If you trade back your pesos, doubt you'll get the same rate so you won't get the same money back. An example is that if the rate is 10.4, the sell back rate could be 10.7.

Leia · 12-24-2005

Most casa de cambios offered 10.3 or 10.4 for USD a week ago. We were a bit disappointed with the Canadian rate when we first did an exchange but after a few days developed the attitude of 'who cares?!' There are different rates for buying and selling.

**Bumper** · 12-24-2005

Banks will always get you coming and going. You'll almost invariably get less than the official rate when you buy, and receive less than the official rate when you sell it back to them. Why? Because they can. When you think about it though, for the most part you're not talking a heck of a lot of money. Half a point here and there? It's not worth agonizing over.

PDFly & Flash · 12-24-2005

For currency exchange, there is always a "buy" and "sell" rate that is on either side of the official rate, that is how they make money (no one but the merchangs would exchange your money if there wasn't a profit). If you look here you'll see one Mexican bank's current rates for the US dollar. While the two rates will always surround the official rate, the distance can vary depending on what bank or exchange you are using, and the country you are in. For example, the exhanges in Playa might give you a very good rate as they are in competition with each other; but your bank likely isn't giving as good a rate because there are costs involved in having pesos lying around at your branch "just in case" someone wants to buy them. I know people that have had similar issues exchanging US dollars for Canadian before coming up for a visit... they got bad rates as they did it too far south of areas where exchanges are common (I bought some of the bills off of one person, they had been sitting in the US bank so long, they had King George instead of the Queen!)

A lot of Canadian's are quite used to exchanging our dollar for the US dollar, and know not to buy a lot more than you need. Just be glad you aren't doing this in Europe, where there is usually a buy and sell rate PLUS a commision between 10 and 40% (unless things have changed).

That all said and done... I do think you're right and you're bank messed up. If you divide $999.92 by 10.09, you would get 9,910.00. However, if they were stating that it is 10.09 pesos to the US$, then they should have mulitipled as you were figuring. Have someone at the back check on that part.

Flash

dgk · 12-24-2005

Quote:

Originally Posted by Bumper

Banks will always get you coming and going. You'll almost invariably get less than the official rate when you buy, and receive less than the official rate when you sell it back to them. Why? Because they can. When you think about it though, for the most part you're not talking a heck of a lot of money. Half a point here and there? It's not worth agonizing over.

It's my fault for not checking their rate before the exchange. I just assumed the bank rate would be at the official rate. So they got me for an extra $58.00 on a $1,000.00 exchange. That's my bad.

But they only gave me 9910 pesos instead of 10,089 that I should have received on a 10.09 rate. I'll hound them for the extra 180 pesos. I'd much rather give it to the van driver, bartender, maid or waitress in Mexico rather than the bank.

vacationstar · 12-25-2005

Quote:

Originally Posted by dgk

It's my fault for not checking their rate before the exchange. I just assumed the bank rate would be at the official rate. So they got me for an extra $58.00 on a $1,000.00 exchange. That's my bad.

But they only gave me 9910 pesos instead of 10,089 that I should have received on a 10.09 rate. I'll hound them for the extra 180 pesos. I'd much rather give it to the van driver, bartender, maid or waitress in Mexico rather than the bank.

The 180 pesos may have been their fee for the transation. That's what happened the one and only time I exchanged before going. It really ticked me off at the time but what are you going to do. I now wait for Playa before exchanging.

Bryzee · 12-25-2005

Quote:

Originally Posted by Bumper

Banks will always get you coming and going. You'll almost invariably get less than the official rate when you buy, and receive less than the official rate when you sell it back to them. Why? Because they can. When you think about it though, for the most part you're not talking a heck of a lot of money. Half a point here and there? It's not worth agonizing over.

I totally agree!! As long as you do your homework before leaving for your vacation, as to be informed at what rate your currency should be as compared to the mexican pesos......after your there....a small difference in percentage points is not worth your time to agonize over......at the most it may mean
1 beverage less in the span of a full day of indulging.....and really how will you ever remember anyways??

synestere · 12-25-2005

Don´t get confused with the "inter banking " rate .......ATM is the best way to do it .

PMD · 12-26-2005

On my first trip to Playa I exchanged $500 USD at my bank thinking I would be ahead of the game by having Pesos in hand when I arrived in Cancun. I also learned by losing some $$.US banks rates and exchange fees Suck! The Riviera bus took USD and I could get a much better exchange rate upon arriving in Playa. Now I just wait until I get there to exchange. Why pad the US banks, rather give the xtra to people in Mexico. It is a rather cheap learning curve, anyway. Enjoy your time in the Sun!

cpfstich · 12-26-2005

Quote:

Originally Posted by Bryzee

I totally agree!! As long as you do your homework before leaving for your vacation, as to be informed at what rate your currency should be as compared to the mexican pesos......after your there....a small difference in percentage points is not worth your time to agonize over......at the most it may mean 1 beverage less in the span of a full day of indulging.....and really how will you ever remember anyways??

Remember....you're on vacation in Playa, relax and enjoy it!!!

Cirelle · 12-26-2005

we usually don't exchange money any longer, peso's are worth more than dollars these days anyway

synestere · 12-26-2005

Cirelle , Can I change my pesos with you

Cirelle · 12-26-2005

Quote:

Originally Posted by synestere

Cirelle , Can I change my pesos with you

let's see, what is the rate today?

12-24-2005	#1 (permalink)
dgk sandflea Join Date: Nov 2005 Posts: 7	arrgggg....currency exchange In preparing for our trip, we exchanged USD for pesos. Since I'm buying food and bev for eight, I wanted pesos in my pocket before I got to Mexico. I know we can use the ATM and I plan to, but I felt the need to make sure we have some pesos in case all you peeps drained the ATMs dry. So.....I assumed I would get a decent rate from our bank before we left. My wife exchanged $1,000.00 (actually 999.92) and got 9,910.00 in pesos. Big diff from what I expected. I expected 10,676 or there about. They said the rate for the day was 10.09. The exchange rate caluculator for the day that I used said 10.67. Does the bank work on such a large spread? And if the rate was 10.09, we should have received 10,089 pesos. Or am I missing something? My question to them on Tuesday will be.....If I give you back 9,910 pesos, how many USDs will I get back?

12-24-2005	#2 (permalink)
SarahB añejo Join Date: Jul 2004 Location: Playa...now Iowa Posts: 2,888	I'm not 100% sure, but I think there is one official rate. Some differences come in when places add a commisson to their rate and also when there is a buy rate versus a sell back rate. If you are in Mexico and trade in pesos for dollars (sell your pesos back before you leave) the rate is worse than if you are exchanging dollars for pesos. Maybe it's something like that since you traded the local currency for foreign. If you trade back your pesos, doubt you'll get the same rate so you won't get the same money back. An example is that if the rate is 10.4, the sell back rate could be 10.7. Last edited by SarahB; 12-24-2005 at 11:15 AM..

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12-24-2005	#3 (permalink)
Leia life=playa Join Date: Jul 2005 Location: Lower Mainland, BC, Canada Posts: 636	Most casa de cambios offered 10.3 or 10.4 for USD a week ago. We were a bit disappointed with the Canadian rate when we first did an exchange but after a few days developed the attitude of 'who cares?!' There are different rates for buying and selling.

12-24-2005	#4 (permalink)
Bumper Class Clown Join Date: Feb 2003 Location: Winnipeg, Canada Posts: 11,409	Banks will always get you coming and going. You'll almost invariably get less than the official rate when you buy, and receive less than the official rate when you sell it back to them. Why? Because they can. When you think about it though, for the most part you're not talking a heck of a lot of money. Half a point here and there? It's not worth agonizing over.

12-24-2005	#5 (permalink)
PDFly & Flash beachaholic Join Date: Oct 2005 Location: Abbotsford, BC - until we figure out some way to make Playa permanent! Posts: 292	For currency exchange, there is always a "buy" and "sell" rate that is on either side of the official rate, that is how they make money (no one but the merchangs would exchange your money if there wasn't a profit). If you look here you'll see one Mexican bank's current rates for the US dollar. While the two rates will always surround the official rate, the distance can vary depending on what bank or exchange you are using, and the country you are in. For example, the exhanges in Playa might give you a very good rate as they are in competition with each other; but your bank likely isn't giving as good a rate because there are costs involved in having pesos lying around at your branch "just in case" someone wants to buy them. I know people that have had similar issues exchanging US dollars for Canadian before coming up for a visit... they got bad rates as they did it too far south of areas where exchanges are common (I bought some of the bills off of one person, they had been sitting in the US bank so long, they had King George instead of the Queen!) A lot of Canadian's are quite used to exchanging our dollar for the US dollar, and know not to buy a lot more than you need. Just be glad you aren't doing this in Europe, where there is usually a buy and sell rate PLUS a commision between 10 and 40% (unless things have changed). That all said and done... I do think you're right and you're bank messed up. If you divide $999.92 by 10.09, you would get 9,910.00. However, if they were stating that it is 10.09 pesos to the US$, then they should have mulitipled as you were figuring. Have someone at the back check on that part. Flash

12-25-2005	#9 (permalink)
synestere añejo Join Date: Nov 2005 Location: Playa del Carmen Posts: 2,491	Don´t get confused with the "inter banking " rate .......ATM is the best way to do it .

12-26-2005	#10 (permalink)
PMD into ruins Join Date: Jul 2002 Location: YellowSprings,Ohio Posts: 74	On my first trip to Playa I exchanged $500 USD at my bank thinking I would be ahead of the game by having Pesos in hand when I arrived in Cancun. I also learned by losing some $$.US banks rates and exchange fees Suck! The Riviera bus took USD and I could get a much better exchange rate upon arriving in Playa. Now I just wait until I get there to exchange. Why pad the US banks, rather give the xtra to people in Mexico. It is a rather cheap learning curve, anyway. Enjoy your time in the Sun!

12-26-2005	#12 (permalink)
Cirelle ruined Join Date: Jul 2005 Location: So. NH Posts: 82	we usually don't exchange money any longer, peso's are worth more than dollars these days anyway

12-26-2005	#13 (permalink)
synestere añejo Join Date: Nov 2005 Location: Playa del Carmen Posts: 2,491	Cirelle , Can I change my pesos with you