This past year marked a dramatic change in the capability of visitors to Mexico (and Mexican residents including business owners for that matter) to change their US dollars into pesos.
Traditional Methods Used for Exchanging Dollars into Pesos
Until May, 2010, Mexicans and international tourists alike could freely attend at the bank and exchange their dollars for pesos. Rates were posted, and it absolutely was just a matter of comparison shopping and then transacting the exchange. For residents of the nation, specifically those in the hospitality industry serving predominantly Americans (innkeepers, tour guides, restaurant owners, etc.), this was an integral means through which business was conducted. It had been particularly important in cities such as Oaxaca which depend on tourism because of their very existence. 꽁머니사이트 Travelers would pay their accounts for accommodations in American dollars – sometimes as a result of experiencing been quoted US dollar prices – and the beneficiaries of these money would simply go to the bank and exchange funds into pesos. Alternatively they would deposit dollars into their business (or personal) accounts, and the financial institution would do the conversion, generally utilizing a preferred rate.
For tourists as well, it absolutely was often an incident of comparison shopping, and then an unfettered exchange of dollars for pesos. For visitors to Mexico there was always the option of comparing rates at casas de cambio (storefront exchange houses) as well as banks. However for Mexicans, the banks were the better medium for exchanging dollars for pesos.
The Change in Mexican Rules and Regulations Regarding Changing US Dollars into Pesos, as Applied in Oaxaca
Now, a resident of Oaxaca for instance, cannot simply exchange dollars into pesos in a bank, or deposit dollars into a personal account or even some forms of business accounts. The business end of matters is complicated and beyond the purview with this article. But suffice it to state, Oaxacans must now either use casas de cambio (with a less attractive rate of exchange more often than not), or open the type of business account permitted by the change in rules.
For tourists to Oaxaca seeking to change dollars into pesos, while banks continue to create the rate of exchange, almost to several they no further do the exchange. Which means visitors are restricted to using casas de cambio, credit cards, or ATMs to acquire pesos.
While suburban Oaxaca branches of Scotiabank follow the newest dictate and do not exchange dollars for pesos or deposit US dollars into a personal account, the key downtown Oaxaca branch of Scotiabank still does exchange dollars for pesos, at least for a non-Mexican with presentation of a passport and a copy of the photo page; and while after the newest rule came into effect a Scotiabank representative advised that implementation of the newest law “was imminent,” we’re still looking forward to the Scotiabank branch to check out suit.
The Rationale for the Change in Law Regarding Exchanging Dollars into Pesos
Word on the road is that there are two primary reasons for the change:
• The change is made to curb money laundering and adversely impact the capability of drug traffickers to keep on business.
• The change addresses the more general underground economy where individuals (business owners and operators) have already been able to just accept US dollars and simply attend at the bank to secure pesos, directly or through personal accounts.
The Actual Impact on Tourists in Mexico, including Oaxaca, of No Longer Being Able to Exchange Dollars for Pesos at Banks
For tourists to centers in Mexico such as Oaxaca, the impact will not be that significant on an individual basis. Yes, being restricted to attending casas de cambio implies that travelers will not able to shop for the most competitive exchange rate to the same extent as before, because utilising the banks will not be available to them. Casas de cambio will now better have the ability to monopolize this segment of the tourist market.
Business owners now struggle with whether to continue to quote and demand US dollars, or the peso equivalent with a view to continuing their ability to keep on as before. They are able to attend at casas de cambio obviously, but the rate of exchange will not be as attractive. And the length of time will it be until regulations are imposed on what casas de cambio conduct business when it comes to requiring additional documentation from those using their services, and remitting information to government?