U.S. dollars are accepted nearly everywhere in Los Cabos. Once your dollars are changed to Mexican pesos, they cannot easily be changed back, so exchange only what you need. If you travel out of the tourist areas, it’s a good idea to have pesos on hand. The best rates of exchange for pesos can be found at banks. The airport exchange is usually reasonable, particularly when compared to hotel rates. Street exchange booths offer less favorable rates than banks, but keep longer hours. Since exchange rates fluctuate daily, it’s better to exchange small amounts at a time.
NOTE: New regulations passed by the Mexican government went into effect on September 14, 2010 tightening the use of American cash dollars (USD) while in Mexico. Businesses may only accept a maximum of $100 USD CASH per transaction, certain businesses may not accept dollars for any purchases, and hotel and exchange booths will only be allowed to exchange $1,500 per month into Mexican Pesos. The use of credit cards, traveler’s checks, Mexican pesos and other foreign currencies are not affected.
Most banks have ATM machines for after-hours cash. Use ATM machines with caution, just as you would at home. Check with your US bank prior to your arrival in Mexico to find out if they have a Mexican affiliate bank you can use while in Cabo. By using the affiliate banks, you can save money on ATM withdrawal fees. Many stand-alone ATMs around Cabo can carry hefty fees and we do not recommend using them. almost 6 years ago