156 replies to this topic

[richsinc]

Just thought I would bring this up for those that may use it and help them save a bit but I suspect many who have lived here a while or have Mexican National spouses that pay the bills already know.

The USD and Mexican Peso fluctuates about 10% per month and if you have to pay your gas, electric, water, etc. in Pesos you can save up to 10% by buying Pesos at 11 per USD instead of paying USD and getting only 10 Pesos or so per USD.

Any needing more clarification, just let me know.

Also most bills can be paid at Ley and some other places except Z-gas and maybe Telnor.

Or you could enroll in my next Micro-Economic Theory class; the class is free but the text book, admissions fees, students ID, etc will run about $268.

[George Costanza]

Good post Rich!
I pay all my bills in pesos! Shop around the different Casa De Cambios as well! I had a friend recently change 3k into Pesos when it hit 11.00.

[Ryu]

I've heard it might go to 11.7 but for myself I might change around 11.4 or 11.5. Then I'll do a big exchange and then just use it slowly to pay the bills and stuff.

[sdc]

As US interest rates rise the value of the dollar will also. It will be higher in the coming months.

[Scooby]

:?: :?: :?: :?: :?: :?: :?: :?:
Changing money in
Tijuana versus San Ysidro;
is there much difference ??
:?: :?: :?: :?: :?: :?: :?: :?:

[Ryu]

You're losing out a little but it's usually not hard to get people to exchange dollars to peso with you at the 10 to 1 exchange rate. The guard I've found is usually cool about it too.

[andy]

No one can tell you where the peso will be in relation to the dollar in the future. The fact of the matter is that the dollar has been losing value to most major currencies throughout the world... peso has been losing even more.

Precious metals are at multi-year highs due to the devaluation of the US dollar.

Either way it won't matter much in TJ since so many businesses base their prices for their goods/services on the dollar/peso exchange rate. When the peso devalues vs the dollar, they raise their prices in pesos. But it is a good opportunity to purchase big ticket items shortly after a big move in the exchange rate before the stores can adjust the prices.

[bigloudj]

I have found that I get a better exchange rate in San Ysidro at the "Monet Pienot" or something like that as you drive East on SYB off of the 805.
It's on the left side with a Green sign.

Their are places in TJ that will give you the same rate if not a little higher than stateside, but you have to look for them.

There are a bunch in close proximity within 2nd and 4th between Constitution and F Martinez.

Example - Monday I exchanged 100 bucks in Sysidro at 11.02
The exchange rate in TJ at best was 10.90

Thursday the exchange rate in TJ on average was 10.93 - 10.95 with a few houses at 11.00
In Sysidro the exchange rate was 11.09

[the.ronin]

Best exchange rate no matter what country you are in is through the ATM.

All major banks have partnerships with foreign banks or certain arrangements so their customers do not get charged transaction fees. For example, Bank of America has an arrangement with Santander Serafin. When I use a Santander I get charged absolutely nothing.

Call your bank and ask if and with who they have partnerships with in Mexico.

[richsinc]

"The U.S. dollar rallied today on speculation that the U.S. Federal Reserve may continue to raise U.S. interest rates following recent U.S. consumer inflation data rising at a faster pace than expected in April. Market players who were too short of dollars ahead of the weekend hurried to buy back the dollar. Currently, there is a 50/50 chance that the Fed will raise rates to 5.25% at its next meeting on June 29."

Ley is giving 11.00; Union Bank in San Diego has 11.1325 today

[bigloudj]

Dumb question time:

So since I have an acct. with Union Bank of San Diego and I find out who their partner is in TJ, I could have gone to that represented bank and exchanged money from their ATM at 11.13 ???

[richsinc]

Don't know biglou; will check it out when I go to UBOC in SD this coming week or maybe on the web.

I would not expect the rates to be exactly the same in US and their affiliate in TJ but shouldn't vary by more than a few hundredths.

If you find out something sooner, please post the info here. Thanks.

[richsinc]

biglou:

I checked out UBOC in downtown SD today and according to the teller manager I could not buy Pesos there and UBOC has no correspondant Mexican Bank, which I find hard to believe. I question her knowledge.

She also said there was a $5 charge for using their ATM cards out of the country :cry:

Hard to believe! I used to buy Duescthe Marks, NZ dollars, British Pounds Sterling by phone years ago and a big California Bank like Union Bank doesn't exchange Pesos for a country 15 miles away!?!?!?

Maybe their San Ysidro branch?

[Tj 4 Rent]

Exchanged today on 4th street in Tj west of Revo

11.15 No Commission


I like to carry dollars and pesos when shopping and paying bills in Tj. Then when paying I can decide what is the best money to use at the time.

[richsinc]

Buy your Pesos now (?) at 11.43 today at UBOC SD and Euros and Yen, not British Lbs. Sterling,too high. And buy Aus and NZ dollars too.

UBOC:
"The Mexican peso continued to tumble against the dollar dropping .28 percent as Mexico's IPC stock index fell 762.47 points to 16,986.27, sighting its worst session since September 2002. With the peso reaching its lowest level since November 2004, look for USD/MXN to remain under pressure as concern mounts over the prospects of higher U.S. interest rates. "

"The U.S. dollar pushed to one-month highs against the euro and yen on Tuesday after the core U.S. producer price index for May rose faster than market predictions, ultimately boosting expectations for the Fed. to continue raising interest rates. The producer price index excluding food and energy increased 0.3 percent in May, the most in three months, after a 0.1 percent jump in April, expectations were for only a 0.2 percent rise. Also releasing this morning was retail sales (excluding autos), which sighted growth of 0.5 percent in May after increasing 0.8 percent in April. The market will continue its data watching mode tomorrow as the Labor Department releases its consumer price index for May. Expectations are for an increase of 0.4 percent in May, after a 0.6 percent gain in April, while prices excluding food and energy may have only risen 0.2 percent. If the numbers beat expectations we could see the dollar continue to push higher, especially as we are approaching the Fed’s next FOMC meeting, which will get under way on June 29 where a move to 5.25 percent has essentially been priced into the market."

Union Bank web link for daily updates:
http://www.uboc.com/...0644804,00.html

[bigloudj]

Which location are you exchanging at that rate rich ?
I called UBOC and verified what the teller had told you.
They do not have a partner in Mexico and if I wanted to exchange dollars into pesos I had to go into the branch, pay for them, and then in a day or two go back to the bank and pick them up.
Too much of a hassle for me when I can stop in SYsidro.
The best rate I found in TJ today was 11.22
If you are exchanging at 11.43 I want to know where
PM me please....

[richsinc]

BigLou;

Never actually bought Pesos from Union Bank; and they do no not have a correspondent bank in MX for some reason; the 11.43 was from their website tho and gives me a better idea of what I should be getting at Ley super?market (11.25) and local cambio's.

The downtown SD main branch does not sell Pesos but I am thinking the San Ysidro Blvd must (?) ; only a mile from the border? Gonna' check it out some day...

Hard to believe it would take a day for Pesos; used to buy and sell Deuschte Marks, Lbs Sterling, Aus $, NZ $ on the phone in five minutes back in the 70's :?

[BajaGringo]

If you can make a good friend of a banker at your local bank, they can waive the ATM fees for you if they choose to up to $100 at a time. I did so and just call her every couple of weeks to see what she is doing and while we are talking on the phone, presto! It pays to have friends and may be worth your while to cultivate a friendship like that if you are using the ATM a lot in Mexico. :roll:

[richsinc]

Kinda' old news from Friday but might help some people:

Union Bank F(oriegn) X(change):

The Mexican peso traded flat after Mexico’s central bank left its key interest rate unchanged. The Central Bank held the overnight lending rate steady at 7 percent at its monthly review, as expected, and reiterated that it had no room to cut rates in the foreseeable future. The bank's decision to keep rates frozen at its monthly meeting was widely anticipated by investors, who see it trying to limit market volatility less than two weeks before a closely-contested July 2 presidential election. Fears of rising U.S. interest rates, which are dulling demand for emerging market assets, had analysts looking for clues over whether Mexico's next monetary move would be a cut or a hike. Higher US interest rates make U.S. Treasury bonds and notes relatively more attractive compared with stocks and bonds in emerging markets, which are seen as riskier investments.



Indicative Rates:

USD/JPY 116.23

USD/CHF 1.2476

USD/CAD 1.1243

USD/MXN 11.4340
EUR/USD 1.2521
GBP/USD 1.8206
AUD/USD 0.7315
NZD/USD 0.6064

USD/TWD 32.700
USD/CNY 7.9978

[richsinc]

My ocassional PSA (Public Service Announcement); get your Pesos while you can still get 11 to the USD.

From UBOC:

The Mexican peso strengthened as conservative candidate Felipe Calderon is getting close for a narrow victory in the presidential election recount. The peso is expected to appreciate further as Calderon is expected to win the election.

Indicative Rates:

USD/JPY 114.95

USD/CHF 1.2286

USD/CAD 1.1104

USD/MXN 11.0795
EUR/USD 1.2770
GBP/USD 1.8400
AUD/USD 0.7445
NZD/USD 0.6053

USD/TWD 32.455
USD/CNY 7.9985