Exchanging Money within Oaxaca, South america: Final Year’s Spectacular Alter towards the Regulation
Last year marked a remarkable change in the ability of visitors to Mexico (and Mexican residents including business owners for that matter) to change their US dollars into pesos.
Traditional Methods Employed for Exchanging Dollars into Pesos
Until May, 2010, Mexicans and international tourists alike could 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 united states, particularly those in the hospitality industry serving predominantly Americans (innkeepers, tour guides, restaurant owners, etc.), this is an integral means by which business was conducted. It had been particularly important in cities such as Oaxaca which count on tourism because of their very existence. Travelers would pay their accounts for accommodations in American dollars – sometimes consequently of experiencing been quoted US dollar prices – and the beneficiaries of the money would simply visit 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 utilizing 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 꽁머니 Mexico there clearly was always the possibility of comparing rates at casas de cambio (storefront exchange houses) in addition to banks. But also for Mexicans, the banks were the greater 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 in to a personal account as well as some forms of business accounts. The business enterprise end of matters is complicated and beyond the purview of 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 alter dollars into pesos, while banks continue to post the rate of exchange, almost to several they no further do the exchange. Which means visitors are on a using casas de cambio, credit cards, or ATMs to acquire pesos.
While suburban Oaxaca branches of Scotiabank follow the newest dictate and don’t exchange dollars for pesos or deposit US dollars in to a personal account, the key 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 newest rule came into effect a Scotiabank representative advised that implementation of the newest law “was imminent,” we’re still waiting for the Scotiabank branch to follow along with 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 designed to curb money laundering and adversely impact the ability 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 lender to secure pesos, directly or through personal accounts.
The Actual Effect on Tourists in Mexico, including Oaxaca, of No Longer Being In a position to Exchange Dollars for Pesos at Banks
For tourists to centers in Mexico such as Oaxaca, the impact will not be that significant on someone basis. Yes, being on a attending casas de cambio ensures that travelers will no longer in a position to look for the absolute most competitive exchange rate to the same extent as before, because using the banks will no longer be available to them. Casas de cambio will now better be able to monopolize this segment of the tourist market.
Business owners now struggle with whether or not to continue to quote and demand US dollars, or the peso equivalent with a view to continuing their power to keep on as before. They are able to attend at casas de cambio obviously, nevertheless the rate of exchange will not be as attractive. And the length of time can it be until regulations are imposed on what casas de cambio conduct business when it comes to requiring additional documentation from those utilizing their services, and remitting information to government?