Thread: Exchange Rate
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Old 11-17-2016   #233 (permalink)
beam-eye
aņejo
 
Join Date: Feb 2012
Posts: 5,347
Quote:
Originally Posted by Ranger View Post
Agree Ris even the banks pay fees to each other.

I just purchased some pesos from AAA, you get the rate the day you buy and pay then.

They purchase thru Wells Fargo, I got $18.512 per dollar, it's nice to have pesos when arriving.
If you withdraw from an ATM, you get the rate at that minute, not the rate of the day. The rate as of this minute is 20.107 pesos to the dollar (the peso is worth about a nickel).

http://www.xe.com/currencyconverter/...rom=USD&To=MXN

This is almost exactly the rate you will get at a no-fee ATM (Scotia Bank if you have a B of A card), but the bank collects a 3% foreign transaction fee (i.e., 3 USD for every 100 USD).

If you buy at your bank's rate of 18.5 per USD, you are paying 1.6 pesos for each dollar, or about 160 pesos for each 100 USD (20.107 - 18.512 = 1.6 pesos per USD, or 160 pesos per 100 USD), which at the current exchange rate is about 8.00 USD for each 100 USD, or 8%, which is almost 3X the 3% foreign ATM charge.

It's why we follow the daily exchange rate and use ATMs instead of using the cambios. It saves money.

Edited to add: the peso went from 20.107 to 20.176 in the time it took me to post this...

Last edited by beam-eye; 11-17-2016 at 12:11 PM..
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