Can I use US dollars in Cabo?

Mexico's currency is the Peso. U.S. Dollars are widely accepted in Cabo, but expect bad exchange rates if you choose to use dollars. The peso is normally closer to 11 pesos to a dollar, but local merchants are likely to charge you 10 pesos to a dollar for purchasing their goods.



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While most places in Cabo will accept USD, it is almost always better to just pay with pesos. It's confusing for many first-time Mexico visitors, but every store, restaurant, or bar can set their own rate of exchange.

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In most tourist areas in Mexico, it is acceptable to tip in either pesos or dollars, though pesos are more practical for the person being tipped. If you do tip in dollars, be sure to only tip using notes and not coins as coins cannot be exchanged.

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You can tip in USD or in pesos, but pesos will be easier for locals to spend. When in doubt, tip the larger value. These suggestions are listed in USD; use the most current peso conversion for the accurate peso tip. For example, at 16 to 1 conversion, a one dollar tip is 16 pesos.

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Before visiting Mexico it may be a good idea to exchange currency at your local bank as they may be able to provide you with the best Mexican Peso exchange rate. When you arrive at Cabo Airport you can also exchange money at each terminal Cash Exchange facility, Cambio.

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While tipping may not be required at some all-inclusive resorts, many guests prefer to do so. In the event that you would like to tip staff during your all-inclusive vacation, it is important to find out in advance whether staff would even be allowed to accept those tips.

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It's up to you how much you tip, but the recommended amount in Mexico is between 10% – 20% (15% is a good standard in tourist areas) of the bill or ticket price.

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Is it rude not to tip at all-inclusive resorts? While tipping is allowed at some resorts, it is optional, so you won't have to worry about staff pressuring you to do so.

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This equates to around $20 to $25 USD per day for all staff members who might help you throughout the day. When heading off property (outside of your all-inclusive resort), you can bring small bills along as well, preferably in local currency.

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While it is possible to use US dollars to pay for tours, tips, and even accommodation, you will need Mexican currency for cash transactions in Mexico. In places that do accept physical U.S. dollars, such as hotels, using them may result in very unfavorable exchange rates or additional fees.

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Tipping in the local currency, pesos, is of course the most convenient option for the recipient, but you can also dole out U.S. dollars. If you do that, be sure to use bills, not coins, because the latter are difficult to exchange.

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