The Dollar Continues to Rise Against the Mexican Peso

Source: iStockphoto

Last week, I did a post directed at foreign retirees living in Mexico explaining how they can maximize their money by choosing the right time and method to transfer currency from their country of origin to their Mexican bank account.

In case you missed it, you can check it out here: Retired in Mexico: Choosing the Right Time and Method to Transfer Your Money.

The timing of that post was very arbitrary, but coincidentally, the U.S. dollar has recently surged against the Mexican peso and has reached the highest level since the beginning of January of this year: 19.45 pesos. In contrast, back in April the dollar was down to 18.0 pesos.

Many economists attribute the decline in the value of the peso to a variety of factors including investor uncertainty about the future of the North American Free Trade Agreement (NAFTA) and the upcoming presidential election in Mexico scheduled for July of this year.

This is good news for American retirees in Mexico who live solely on income originating in the United States. For those folks, this surge can mean a lot more pesos in their pocket — but only if they actually exchange dollars for pesos before the rate drops again.

Let’s Wrap This Up

Most retirees that we know in Mexico don’t pay much attention to exchange rates and simply transfer money from their home country to Mexico on regular intervals.

One of our friends was like that until I showed him how he has missed out on several thousand pesos of income over the past few months by not choosing the optimal time to make his transfers. He looked a little depressed when he saw the numbers but he vowed not to make that mistake again. It’s amazing what you can learn at Happy Hour.

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About the Author

Q-Roo Paul
Paul Kurtzweil (Q-Roo Paul) was a deputy sheriff in Florida for 25 years before retiring at the rank of lieutenant in 2015. He and his wife moved to Mexico looking to maximize their retirement income. In 2016, they started a blog called Two Expats Mexico ( sharing their experiences, as well as information about the logistical and legal aspects of retiring south of the border. The blog has been viewed over two million times and the articles have been republished in numerous periodicals across Mexico.

33 Comments on "The Dollar Continues to Rise Against the Mexican Peso"

  1. Ingrid Royle | May 7, 2018 at 9:23 am |

    Thank you QrooPaul for this information.

  2. Can be risky trying to call tops and bottoms in an exchange rate, the dollar surged after the Trump election but came back down quite a bit from there when ’20 was supposed to be the new normal’. However some long forecasts can be generally helpful:

    • Q-Roo Paul | May 7, 2018 at 9:31 am |

      We all knew that was going to happen after the election and that it wouldn’t last. I never thought 20 would be the new normal at all, especially since Trump is still saying that the dollar is too strong to be competitive on an international level and it needs to be devalued.

      The funny thing about those long term forecasts is that they are right about as often as a long term weather forecast…lol.

      We’ve definitely gotten good at taking advantage of increases to move money. It is one of the reasons we have extra pesos for staycations.

  3. Mark in Merida | May 7, 2018 at 9:27 am |

    Great time to start to use Transfer Wire… the rates remain the best deal for money transfer. Thank you for that tip!

  4. Rob Ramsey | May 7, 2018 at 9:28 am |

    How far to English speaking doctors? Thx! I love your blog.

    • Q-Roo Paul | May 7, 2018 at 9:32 am |

      Every doctor that we have visited in Mexico has spoken English very well.

  5. Bummer, last week banconorte gave us 17.54. Too bad we are back in the states now!

    • Q-Roo Paul | May 7, 2018 at 9:31 am |

      Banks give terrible exchange rates. That’s a huge money-maker for them.

      • I think you need to be a little more specific here, Paul. I think you’re speaking to someone who walks into a bank and wants to exchange currency. On that I agree (and your point has been true pretty much world-wide for a long time). However, credit card companies, which are essentially banks, can offer good exchange rates. There are a myriad of option (I thought you’d done a posting on the various exchange methodologies, but I’m not finding it on a quick search). Bottom line – it pays to shop around.

        • Q-Roo Paul | May 7, 2018 at 8:25 pm |

          Just to be clear, I was referring to international transfers offered by banks. I agree that credit cards can be a good way to get a good exchange rate when making purchases (provided there are no foreign transaction fees) and I’m actually including this information in a post coming out in the near future.

          So many topics, so little time. 🙂

  6. Marjorie Ratcliffe | May 7, 2018 at 9:32 am |

    What about the Canadian dollar?

    • Q-Roo Paul | May 7, 2018 at 9:34 am |

      The Canadian dollar is not doing as well. At this very moment, it’s at 15.02 pesos per 1 Canadian dollar.

      You can always find the current exchange rate for euros, U.S. dollars and Canadian dollars on the main page for the site. It updates hourly.

  7. Steve Black | May 7, 2018 at 9:38 am |

    Okay, I have the opportunity to exchange my dollars to pesos either today or in two weeks. At which time I will need the pesos for sure. Should I wait or should I exchange them now? I really don’t understand how one really knows?

    • Q-Roo Paul | May 7, 2018 at 9:40 am |

      That is always the tough question. It could go higher or lower, it really depends on what’s happening in the news. The good news is that rate at this moment is as high as it has been since early January, so moving money still makes sense financially because you’ll get more pesos than you would have only a week earlier.

  8. Deborah S. | May 7, 2018 at 9:54 am |

    For those withdrawals from ATMs, I find the “ElDolar” app and website to be helpful. It gives the average bank exchange rate for the day, and then provides the rates given by individual banks. You can make yourself a few pesos when you choose the ATM of the bank with the best rate.

    • Q-Roo Paul | May 7, 2018 at 9:58 am |

      Thanks for the tip, Deborah 🙂

    • I believe it is your “home” bank that is establishing the exchange rate not the bank whose ATM you are using. You can use any bank’s ATM as long as you pay attention to what each bank charges for the ATM use. The best I have found is CI Banco at 17.4 pesos per withdrawal and the next in line in Bancomer with 25.5 pesos per withdrawal. Most Mexican banks are in the 35+ range and in the Cancun Hotel Zone it can be 70+ pesos.

      • Helen McNamar | May 8, 2018 at 6:44 pm |

        You are talking about the charge to use their ATM machines. That has nothing to do with foreign exchange rates which are set by the buying and selling rates on the NY Stock exchange. Best mid range exchange rate can be found on sites like Transferwise exchange rates are usually the same as those rates when making transfers. Most banks “ back home” take that rate, add on1 r 2 % when you use your ATM card…that is less pesos for you. Pays to do some shopping around and to do a whole lot of research.

  9. daniel wright | May 7, 2018 at 10:09 am |

    i enjoy your posts very much. please keep sending them to all of us who are still thinking about mexico.

    my question: there is a lot of political tension between mexico and the usa. has that manifested in any way with how north americans are treated in mexico?


    • Q-Roo Paul | May 7, 2018 at 10:12 am |

      Thanks for following us, Daniel. The answer to your question is no, we haven’t seen or even heard of any political tension that affects average folks like us. The majority of people don’t associate individual Americans with American political decisions.

  10. Gerald Andres | May 7, 2018 at 10:38 am |

    I decided to try your idea. I checked my banks exchange rate for today and it was 18.96, 0.4 below the official rate. Transferred $1500 and compared with the rate I did on 1 May and wound up making $50 extra. Who knew? Thanks for the reminder to double check rates.

  11. Thanks Paul and Linda. I will transfer money now. I love your blog. I will share this article in our Friends of Puerto Morelos page (Facebook )

  12. Monica and Bennie | May 7, 2018 at 2:03 pm |

    Thanks Paul and Linda! My husband and I are moving to Puerto in June. We love your posts! Thanks SO much for sharing such valuable information!!!

    • Q-Roo Paul | May 7, 2018 at 8:19 pm |

      Thanks for following us and good luck on your upcoming move to Puerto. 🙂

  13. I’m wondering if this is a case of, “buy the rumor, sell the news”? If this is all about the Mexican election, I predict that the peso will top out on 30-June. (NOTE: My opinion plus $2.00 USD MIGHT buy you a cup of coffee at Starbucks.)

  14. Jody Quilllian | May 9, 2018 at 11:21 am |

    Hi, Paul. I just came upon your website today. It has a wealth of information! My partner Jorge and I are going to move to Mexico after he retires from teaching in May of 2020. I retired from teaching in 2008 and have been working as a court interpreter for several years. We are going to start out living in Pátzcauro, Michoacán, and later move to Jorge’s hometown of Puebla. I am from Dallas, Texas, where we both live with our dog Buddy. ¡Saludos! Jody Quillian

    • Q-Roo Paul | May 12, 2018 at 3:26 pm |

      Thanks for following the blog and good luck on your future move down to Mexico. It’s a great place to retire.

  15. Jody Quilllian | May 9, 2018 at 5:38 pm |

    Oops! I misspelled Pátzcuaro! 🙂 I know we still have two more years to go, but I’m excited about moving down to Mexico!

Comments are closed.