# Bringing Pesos to MX



## chulor (Aug 19, 2013)

We're moving to Chapala this week. 

Should I bring a large amount of Pesos (bought in US) or bring US$ and wait and buy them/deposit US$ into my new Bancomer acct?

Gracias!!!!

cj


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## JoanneR2 (Apr 18, 2012)

chulor said:


> We're moving to Chapala this week. Should I bring a large amount of Pesos (bought in US) or bring US$ and wait and buy them/deposit US$ into my new Bancomer acct? Gracias!!!! cj


Why don't you just do a bank transfer of funds? I wouldn't wander round any country with large wads of cash....


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## chulor (Aug 19, 2013)

Don't have an acct there yet. PLan to open one on day 2.


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## chulor (Aug 19, 2013)

besides, i'd keep it quiet. not carry it in my hand. just need to know best way


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## sparks (Jun 17, 2007)

You get a terrible exchange rate in the US

I would ask why a "large amount" .... will you have instant spending needs beyond what you can draw from a ATM?


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## chulor (Aug 19, 2013)

to pay 2 months rent-owner prefers USD-and to open acct at bancomer


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## sparks (Jun 17, 2007)

An illegal landlord ... eh? Well, bring dollars for him and it only takes 1000 pesos to open an account at Banamex


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## ojosazules11 (Nov 3, 2013)

I don't know how it is in other parts of Mexico, but in the state of Morelos no bank is allowed to accept US dollars in cash. I found this out the hard way when making a purchase of property and I had a significant amount of US cash with me. If I'd taken Canadian$ I would have been fine. Who'd've thunk?? (I know, bad grammar - remember I'm from Nebraska.)
Anyway, I had the choice of using a casa de cambio at a significantly reduced exchange rate, or going back to the airport in Mexico City to exchange the dollars. The banks in Morelos cannot even accept the dollars for deposit - no US cash accepted, regardless of amount, in any bank in the state of Morelos - believe me, I checked with them all. The word on the street was that this legislation was meant to deter money laundering - I have no idea if that is accurate. 

This prohibition was only for cash. US$ Traveller's Cheques were accepted without a problem. 

I would recommend either traveller's cheques, withdrawing from the ATM (check with your bank re charges/surcharges for foreign ATM withdrawals), or even a service such as Moneygram. I have been surprised at how good Moneygram's exchange rates are, at least from Canada, and even with the sending fee I calculated it was a better rate than through the ATM (my bank does not charge me any transaction fee for withdrawing from a foreign ATM, but their exchange rate was lower than Moneygram). Moneygram's fees in Canada are significantly less than Western Union- don't know if the same holds true in the States. If you do a Moneygram transfer, the money is available almost immediately in Mexico, where you can pick it up at an Elektra store or Banco Azteca. I also don't know if you can send to yourself, or if the sender would be someone else, then you pick it up. Make sure the spelling of your name exactly matches your identification document (e.g. Passport) as we've had remittances to family members rejected due to one letter being wrong. I usually use the ATM when I'm there, but thought Moneygram might be another alternative for when you first arrive (you'd send it before you leave, pick it up when you arrive.) It is very safe and guaranteed - we use it regularly for remittances to family.


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## RVGRINGO (May 16, 2007)

USe your debit card to get pesos at the GDL airport. No need to buy them in the USA at a very poor rate. You cannot deposit US cash in Mexico in any substantial amount any more. So, if you feel the need for a Mexican bank account (many do not), open it with cash from an ATM.
You may want to notify your US bank that you will be using your cards in Mexico and also ask them to raise your daily limit to $1000 USD, for example, to minimize ATM and foreign exchange fees.
If you are eligible for a USAA account, use that.
Welcome, and enjoy!


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## chicois8 (Aug 8, 2009)

I say bring all your cash money down and I will be happy to pick you up at GDL and drop you somewhere, Just kidding....


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## ojosazules11 (Nov 3, 2013)

The only caveat I would add about picking up large amounts of money from a transfer to Mexico is that sometimes there are people on the lookout for "marks", someone from whom they think they can get easy cash. If they see somebody receiving a large amount that person could be targeted to have the money stolen. I wouldn't go alone to pick up a large amount of money from either the bank or an Elektra store. Even my husband, who is Mexican, had this happen to him years ago, when he had to cash a cheque at a bank in a different town. Someone in the bank apparently alerted someone else outside, and as he left the bank a very poor-looking barefoot person came up and asked if my husband could help him understand an official document as he was illiterate. My husband stopped to help, and then was swarmed by several men, including the initial person who stopped him. He had divided the money in different pockets, so they didn't get it all, but he lost a lot of money that day. 

Fortunately he didn't lose his kindness and willingness to help out a stranger in need.


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## joaquinx (Jul 3, 2010)

I believe there is a 3% tax on cash deposits over 20,000 pesos per month. Maybe less, but not much.


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## citlali (Mar 4, 2013)

over 15000 pesos per month per account.


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## sparks (Jun 17, 2007)

traveller's cheques, money orders and cashiers checks are thing of the past --- forget them

Banks in Mexico are "allowed" to change $300 US a day .... but they will copy all your ID as if you were committing a crime. And they don't have to do it


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## ojosazules11 (Nov 3, 2013)

sparks said:


> traveller's cheques, money orders and cashiers checks are thing of the past --- forget them
> 
> Banks in Mexico are "allowed" to change $300 US a day .... but they will copy all your ID as if you were committing a crime. And they don't have to do it


It depends on where the bank is. In Morelos the banks are not allowed to accept any US dollars, not $300, not $30, not $3. I went from bank to bank asking, believe me. Bancomer could not even accept it as a deposit to an existing commercial account which was its final destination. I had taken a bit in traveller's cheques to not have it all in cash - because I could not access my US$ account (held at a Canadian bank) with a debit card - so I had to use either cash or traveller's cheques. Like you say Sparks, traveller's cheques are passé, and the bank here in Toronto didn't have many at hand. It was good they had some, though, as the banks in Mexico could accept those but $0 cash. I wish I'd known about that restriction before I went down, so I'm just warning others to not rely on being able to change or deposit US$ cash at banks in all parts of Mexico.

This was just in July 2013, and the restrictions apparently have been in place since 2011 or 2012. The Morelenses all seemed to know about it, but no one thought to warn me Fair enough - I was coming from Canada so they wouldn't have known I was bringing US cash. Wire transfers also work, but you need to have an existing account at a Mexican bank. There are also the casas de cambio who will accept US $ but at a lower exchange rate - and that translates to a fair amount of moolah lost if the person is changing a significant amount of money.


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## Anonimo (Apr 8, 2012)

Look out for Mexican banking rules which will tax cash deposits in any given month if the balance exceeds (I want to say $10,000 pesos, but I'm not sure.)

Also IRS rules require you to report foreign bank accounts that have balances of over $10,000 USD in any month.

I'm sure someone else can refine and clarify what I have written.


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## charlie131120 (Nov 30, 2013)

Santander warned us of the dollar cap on deposit when we created the account (which we have now closed because they were the most unwieldy bank on planet earth).

It surprises me that wire transfers (from the US or within Mexico) don't fall under this same cap.


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## charlie131120 (Nov 30, 2013)

For the future - there is a Monex up on Domingo Diaz (Cuernavaca). I'll bet you could open an account there (in various currencies) and take care of your exchange issues. Never used them but they seemed professional.


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## ojosazules11 (Nov 3, 2013)

I need to clarify this 3% tax on deposits. So if we send a remittance to family in Mexico by Moneygram that is over MN$10,000? or $15,000? or $20,000? (all three amounts have been mentioned in the above posts), and it is then taken in cash to be deposited at the bank, a 3% tax will be charged. Correct? 

If we wire the money directly to the bank account there will be no tax, regardless of the amount. Is this correct?

Also in the above posts some have mentioned deposits, others have mentioned the account balance. Does the account balance matter in regards to this tax, or is it strictly the amount of the deposit?

Is this a federal tax? A state tax? 

Please clarify. Thanks.


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## TundraGreen (Jul 15, 2010)

charlie131120 said:


> …
> It surprises me that wire transfers (from the US or within Mexico) don't fall under this same cap.


I think the rules on cash deposits are driven by concern about people laundering money from illegal activities. Wire transfers are easier to track.


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## ojosazules11 (Nov 3, 2013)

charlie131120 said:


> For the future - there is a Monex up on Domingo Diaz (Cuernavaca). I'll bet you could open an account there (in various currencies) and take care of your exchange issues. Never used them but they seemed professional.


Welcome to the forum, Charlie! Thanks for this info. Are you in Cuernavaca? I haven't seen many posts from expats in Morelos, not sure why that is.


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## RVGRINGO (May 16, 2007)

The tax is on cash deposits only, not on checks, wire transfers, etc. Please do not be confused by that.
We have lived here well over a decade, are homeowners and have purchased a car in Guadalajara; all without using a Mexican bank. I can hardly remember what US cash looks like. ATMs are everywhere and our bank is very responsive to those rare special needs. Keep your life as simple as possible.


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## joaquinx (Jul 3, 2010)

RVGRINGO said:


> . . . and have purchased a car in Guadalajara; all without using a Mexican bank. . . .


How did you pay for the car? Did you haul all that cash down to the dealership?


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## RVGRINGO (May 16, 2007)

No cash. All done with a single plastic card payment pre-approved for the day by my bank. Bought two homes using checks from our US bank. Occasional large appliance purchases on plastic have required a security response by phone, which can take a few extra minutes. If your bank is not accustomed to dealing with expats and international stuff, dump them for one that is.


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