A year ago marked a remarkable change in the ability of visitors to Mexico (and Mexican residents including business owners for that matter) to exchange their US dollars into pesos.
Traditional Methods Employed for Exchanging Dollars into Pesos
Until May, 2010, Mexicans and international tourists alike could actually freely attend at the lender and exchange their dollars for pesos. Rates were posted, and it had been simply a matter of comparison shopping and then transacting the exchange. For residents of the country, specifically those in the hospitality industry serving predominantly Americans (innkeepers, tour guides, restaurant owners, etc.), this is an integral means where business was conducted. It was particularly important in cities such as for instance Oaxaca which count on tourism for their very existence. Travelers would pay their accounts for accommodations in 신규 꽁머니 American dollars – sometimes consequently of getting been quoted US dollar prices – and the beneficiaries of the money would simply go to the lender and exchange funds into pesos. Alternatively they would deposit dollars within their business (or personal) accounts, and the financial institution would do the conversion, generally employing a preferred rate.
For tourists as well, it had been often an instance of comparison shopping, and then an unfettered exchange of dollars for pesos. For visitors to Mexico there is always the option of comparing rates at casas de cambio (storefront exchange houses) as well as banks. But 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 like, cannot simply exchange dollars into pesos in a bank, or deposit dollars right into a personal account or even some types of business accounts. The business end of matters is complicated and beyond the purview with this article. But suffice it to express, Oaxacans must now either use casas de cambio (with a less attractive rate of exchange more often than not), or open the sort of business account permitted by the change in rules.
For tourists to Oaxaca seeking to improve dollars into pesos, while banks continue to create the rate of exchange, almost to several they no further do the exchange. This means that visitors are limited to using casas de cambio, charge cards, or ATMs to acquire pesos.
While suburban Oaxaca branches of Scotiabank follow the new dictate and do not exchange dollars for pesos or deposit US dollars right into a personal account, the main downtown Oaxaca branch of Scotiabank still does exchange dollars for pesos, at the least for a non-Mexican with presentation of a passport and a copy of the photo page; and while after the new rule came into effect a Scotiabank representative advised that implementation of the new 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 street is there are two primary reasons for the change:
• The change is designed to curb money laundering and adversely impact the ability of drug traffickers to continue business.
• The change addresses the more general underground economy where individuals (business owners and operators) have now been able to accept US dollars and simply attend at the lender to secure pesos, directly or through personal accounts.
The Actual Effect 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 for instance Oaxaca, the impact won’t be that significant on an individual basis. Yes, being limited to attending casas de cambio ensures that travelers will no longer able to look for probably the most competitive exchange rate to the exact same extent as before, because utilising the banks will no longer be offered to them. Casas de cambio will now better have the ability to monopolize this segment of the tourist market.
Business owners now struggle with if to keep to quote and demand US dollars, or the peso equivalent with a view to continuing their ability to continue as before. They are able to attend at casas de cambio of course, however the rate of exchange won’t be as attractive. And the length of time will it be until regulations are imposed how casas de cambio conduct business with regards to requiring additional documentation from those using their services, and remitting information to government?