I would preface this question with a question as to where you are going first? As a cheapskate who loves to save money I have really debated with how to get the most for my money while traveling in Mexico. Here is what I have determined. In some places next to the border it is actually cheaper to pay in U.S. Dollars then in Mexican Pesos as some bars and restaurants give discounts in the form of a higher exchange rate to the tourist. If your not good at math and figuring out the exchange rate they are giving you I would recommend sticking with pesos. That is why if I am going to TJ I usually carry both. If your not going to a touristy area you will 100% for sure want to exchange your money into pesos, and even then your going to want to have your majority of cash in pesos. To get the highest rate of exchange for you money your going to want to check with your bank to see if they charge a fee for foreign currency transactions. If they do its going to most likely be cheaper to withdrawal your money and exchange your money on the American side of the border. (In my experience but not also true people wait to cross to the other country before exchanging their money. So the U.S. side usually has a higher sell rate for pesos and a higher buy rate for dollars, which is good.) Also make sure you go to a place that Does NOT charge a commission. As this confuses some people here is a quick example if the buy rate is 13.20 you will get 13.20 pesos for every dollar you exchange. $10=132 Pesos. Lets say you have some pesos left over and want to exchange it back for dollars. Sell rate is 14.00 for every 14 pesos you have you will get 1 dollar. 140 pesos =$10 If your bank doesn't charge a foreign transaction fee then you usually get your best rate as a card purchase and second best rate as an ATM withdrawal. (Border ATM's, Cajeros Automaticos, will sometimes give you an option to get your money in pesos or dollars, you will want to choose pesos.) I recommend BaNorte as they only charge 7.5 pesos withdrawal fee and I personally just like them. Hope this helps and also, have a fun time!
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