U.S. cash is being restricted in Mexico

LITTLE ROCK — Travelers, be aware: Your freewheeling days of spending U.S. dollars in Mexico are over.

Recently, the Mexican government passed a law restricting how many greenbacks Americans can exchange south of the border. The new magic number: $1,500 per month. In addition, certain states, such as the resort haven of Quintana Roo (see Cancun, Cozumel and Playa del Carmen), are capping individual purchases at $100. AAA and other travel experts addthat some vendors may refuse dollars altogether.

“Despite the $100 restriction in many parts of Mexico, tour operators are warning customers that some businesses might not accept dollars at all,” AAA spokesman John Townsend said, “and are suggesting that visitors stock up on pesos or traveler’s checks in the U.S. before flying south.”

Townsend also said that the law forbids Mexican airports and their occupants to accept U.S. currency “for anything,” including checked baggage fees. Air Transport Association spokesman Victoria Day said the organization’s members are addressing the new law “individually.” JetBlue, for one, now takes only credit cards and pesos for expenses incurred in Mexican airports; American Airlines has established a similar policy.

The government enacted the change to control the number of dollars entering the country’s banking system, hoping to curb drug-related money laundering. The law, however, does not limit credit card or debit card transactions, or ATM withdrawals of pesos. Nor is it impeding some regions’ trade with American visitors.

“Despite recent reports, hotels, restaurants, stores and other merchants in Baja California still gladly accept U.S. dollars,” Juan Tintos Funcke, state secretary of tourism for Baja California, said in a statement. “Dollar bills are as welcome as pesos and credit cards across Baja California, everywhere a tourist would spend money.” The one concession: “For sales over U.S. $100 in cash, venues may choose to run multiple transactions without any problem.”