Planning a trip to the stunning shores of Cabo San Lucas? You’re in for an unforgettable adventure filled with breathtaking beaches, luxury yachts, vibrant culture, and mouthwatering cuisine. But before you set sail on your dream vacation, there’s one important detail you need to master: the currency in Cabo.
Understanding how to use Mexican Pesos and US Dollars while you’re in Cabo can save you money, avoid confusion, and make your experience smoother and more enjoyable. Whether you’re booking a Los Cabos boat rental, exploring local markets, or enjoying a private catamaran tour, knowing the ins and outs of currency exchange and payment methods is essential.
In this guide, we’ll cover everything you need to know about using pesos and dollars in Cabo, how to get the best exchange rates, and practical tips for managing your money while you soak up the sun. Plus, we’ll share insider advice to help you make the most of your trip, including links to our favorite Cabo San Lucas travel guide book for even more expert tips.
Understanding the Official Currency in Cabo
First things first: the official currency of Cabo San Lucas, and all of Mexico, is the Mexican Peso (MXN). Pesos come in various denominations, including coins (5, 10, 20 pesos) and bills (20, 50, 100, 200, 500, and 1,000 pesos). The peso is the legal tender for all transactions, and using it is often the smartest choice.
Why? Paying in pesos usually means you get better prices and avoid unfavorable exchange rates. Local vendors, markets, and many restaurants prefer pesos because it eliminates the guesswork and potential losses from converting dollars on the spot.
If you’re planning activities like a private catamaran tour in Cabo San Lucas, or renting a yacht through a Los Cabos yacht rental, knowing that pesos are the norm will help you budget better and avoid surprises.For a comprehensive list of fun things to do while you’re here, check out our guide on things to do in Cabo San Lucas.
Using US Dollars in Cabo – What You Need to Know
You might be surprised to learn that US dollars are widely accepted in Cabo, especially in tourist hotspots, hotels, upscale restaurants, and luxury shops. This convenience is a relief for many travelers, but it comes with some caveats.
While you can pay in dollars, the exchange rates offered by merchants are often less favorable than official rates. This means you might end up paying more than if you had used pesos. Some vendors might round prices up or give you change in pesos, which can be confusing and costly.
For example, a hotel might quote a rate in dollars but apply a conversion rate that’s higher than the going market rate. Similarly, local shops or taxis might accept dollars but give change in pesos at a poor rate.
If you do decide to use dollars, it’s best to use them for larger purchases like hotel bills or tours, where the exchange rate is usually more transparent. For everyday expenses, especially small purchases, it’s better to use pesos.
Planning your visit during the best time to visit Cabo can also impact your currency needs, especially if you’re attending seasonal events or whale watching tours.
How to Get the Best Exchange Rates in Cabo
Getting the best value for your money in Cabo means knowing where and how to exchange your currency.
ATMs and Banks: Your Best Bet
ATMs and banks in Cabo generally offer the best exchange rates with low or no commission fees. Many ATMs have English language options and dispense pesos directly, making it easy and convenient. Just be sure to check with your bank about any foreign transaction fees before you travel.
Casa de Cambio (Money Exchange Houses)
These are plentiful in tourist areas and offer a quick way to exchange cash. While convenient, be cautious of hidden fees or poor rates. Always ask for the exact rate and any commissions before exchanging your money.
Avoid Airport and Hotel Exchanges
Airport currency exchange counters and hotel front desks often have the worst rates and highest fees. It’s best to avoid exchanging money at these locations unless absolutely necessary.
Tips for Using ATMs
- Use ATMs located inside banks or reputable stores for added security.
- Withdraw larger amounts to minimize fees but avoid carrying too much cash.
- Always choose to be charged in pesos rather than dollars to avoid dynamic currency conversion fees.
For a detailed plan of your daily activities, including where to exchange money, our Cabo itinerary is an excellent resource.
Practical Tips for Managing Currency in Cabo
Here are some insider tips to help you manage your money smoothly while enjoying your Cabo trip:
- Carry a mix of pesos and US dollars: Having both currencies gives you flexibility, especially when traveling between touristy and local areas.
- Use pesos for small purchases and markets: Paying in pesos often gets you better prices and helps you avoid confusion.
- Check your credit card’s foreign transaction fees: Many cards charge fees for international purchases. Use cards with no foreign fees where possible.
- Ask about exchange rates before paying in dollars: If a vendor accepts dollars, always ask what rate they’re using to avoid surprises.
- Monitor exchange rates: Use apps or websites to track rates before and during your trip to exchange money at the best time.
If you’re traveling as a couple and looking for romantic experiences, consider checking out our Cabo excursions for couples for unforgettable memories.For those visiting during the holiday season, our guide on things to do in Cabo in December offers festive ideas and tips.
Summary – Smart Currency Use for a Hassle-Free Cabo Trip
To recap, the Mexican Peso is the official and preferred currency in Cabo, and using it will generally save you money and hassle. US dollars are accepted in many places but often come with less favorable exchange rates, so use them wisely.
For the best rates, rely on ATMs and banks rather than airport or hotel exchanges. Carry a combination of pesos and dollars, and always be vigilant when exchanging money or paying in foreign currency.
Planning ahead and understanding the currency landscape will help you focus on what truly matters – enjoying your luxury yacht rental, private catamaran tours, and all the incredible experiences Cabo has to offer.
Ready to experience Cabo like never before? Book your Los Cabos boat rental today and let us take care of the rest!
Don’t let currency confusion hold you back from the trip of a lifetime. Whether you’re looking for a relaxing day on a private yacht, an adventurous catamaran tour, or a romantic excursion, Boat Trips Los Cabos offers seamless booking and expert local advice to ensure your vacation is flawless. Book your Los Cabos boat rental today and enjoy luxury, convenience, and unforgettable memories in one of the world’s most beautiful destinations.
