Currency Exchange Location
It’s a fallacy that American dollars rule when shopping in Oaxaca, or other cities in Mexico for that matter. In fact, the opposite usually holds true. That is, when making purchases in Oaxaca using US currency, one tends to receive a less than optimum exchange rate. Vendors will at times do a very rough calculation, selling at 10 or 11 pesos to the dollar, rather than at the bank rate of 12 or 13. Certainly buying with US dollars is acceptable, but doing so will not yield the best result. Accordingly, changing one’s home currency into pesos is advisable if one chooses to travel with cash as opposed to using an ATM in Oaxaca.
Home Currency v. Pesos for Oaxaca, Mexico
As suggested above, one is generally better off using pesos rather than US dollars to make purchases in Oaxaca, and indeed elsewhere in Mexico. And while US dollars are accepted virtually everywhere, the same does not often hold true for other currencies when it comes to buying goods and services.
In terms of other foreign currencies, there are casas de cambio (exchange houses) in downtown Oaxaca for changing several currencies. However they are in far greater abundance at the airport in Mexico City, offering attractive exchange rates for virtually all major currencies. The rate of exchange is generally best on the ground level of the Mexico City airport, once customs is cleared, along the extensive strip of shops and businesses where one either exits the airport or prepares to enter the domestic flights area.
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