I am travelling to Mexico on 2nd June, do you recommend Mexican Peso or US Dollars?

I would recommend using pesos. Prices in dollars are usually higher. Example; a hotel in Mexico that I stayed at one time assumed that I'd pay in dollars and they gave me the price in dollars. Then I told them that I don't have dollars. They gave me a price in pesos that came out to be about $15 cheaper per night.

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