Viva Mexico! Pesos or Dollars?

 I've written about this multiple times over the last year or so... tidbit here, tidbit there, as part of other posts. .. mainly in posts discussing 'tipping'.

Few weeks ago was in Cancun and I asked a couple of specific questions....  two of which I'll discuss here. First was minimum wage and second was which currency is preferred?

First one...   I was under the impression it was about $8 a day for folks working at resorts.  He told me it was closer to $15 (he told me $14 or $16 but I don't recall which).  Still that's pretty low.  In fact I just looked it up for this discussion

As of January 1, 2026, the general minimum wage in most of Mexico, including Quintana Roo (outside the northern border zone), is MXN $315.04 pesos per day, an increase from the 2025 wage of MXN $278.80, with higher rates applying in the Northern Border Free Zone. These new rates reflect a 13% rise from the previous year, combining a percentage increase with an Independent Recovery Amount (MIR). 

In dollars that about what  ..... $16 a day depending on the exchange rate?  So, there we go.  Point being, some of these folks put in some long days, earning to feed their families.  Which is why I tip often when folks are in the service industry.  And that brings me to the next subject.

Currency:  Tourists are always asking, should I tip in Pesos?  It's not always simple for folks to exchange before leaving the US.  You can exchange at the airport. You can exchange when you get to Mexico.  Fact is, most don't.  They tip in US Dollars.  Hell, you can tip in ANY currency and they'll accept your money with a smile.  Nice part about USD is you can spend them throughout the region and they'll be accepted at or near the current exchange rate (sometimes, they really ding you on this to their advantage).  Over the years, I've begun bringing more pesos with me, vs USD.  I've got 2 banks.  The small local one will order the Pesos for me, but they charge me a fee.  Seems like the last time they charged me a 1% fee for $2000 USD worth of Pesos.  So, I decided no more. But my second bank is CHASE and due to their size and being Interrnational, they don't charge me to order or to exchange.  I order the Pesos, they show up five days later and ...I park them in the safe until my next trip to Mexico.  But the real question is ... what do THEY (locals) prefer?  Pesos.

My understanding from the conversation last week is they can't spend the USD on the local market as Mexican Nationals.  They have to convert them.   I was told the average person on the resort is working 6-7 days straight and on their off days (one?) when they should be resting, etc .. they now have to take time to take all their tips and exchange them for Pesos.  Think about that one for a minute.  All the tips , all week .. .are sitting there non spendable until they do that.  What if they can't get to the exchange for some reason?  What if they need funds during the week?  I'm thinking .. now that is a Pain the Ass!   Also, there is an exchange rate/fee they lose funds to as well.   So, what should you bring?  Bring anything you want, tip generously when deserved, and tip often.   But ..

If you want to really do it right, exchange your local currency for Mexican Pesos before heading down.  I normally travel with $1-2k worth (USD value) of Pesos. I usually only spend a fraction of that on tips and if I go downtown.  I usually come back with 1/2 to 3/4ths of it, and park it for the next trip.  But, I NEVER run short. I go to Chase and request $40,000 Pesos, in smaller demonnations.  500s, 200s, 100s, and a shit load of 50s.  I tip the crap out of those 50s (about $2.50 USD equivalent).  I also bring a lot of $2.00 USD bills and sneak them in the mix once in awhile.  And If I have a stash of $1 USD bills, I always bring them.  I mentioned I never run short.  Every week I read where somone is looking for an ATM to get Pesos.  Or they ran out of cash. That happened to me about 15 years ago due to some extra costs I didn't budget for when we did our renewal at the Barcelo; never again.

This should clarify the USD or Pesos for most.  Bring Pesos; problem solved.