A new Mexican law restricting USD cash purchases, effective today, restricting the ability to make purchases in USD cash of more than $100. While the number of transactions per person has not been limited, each USD cash transaction may not exceed $100 and some shops and other businesses may refuse U.S. cash purchases completely.
Visitors to Mexico who may be accustomed to purchasing goods or services with U.S. cash payments will still be able to use other forms of payment such as credit cards, debit cards, travellers cheques and Mexican pesos.
Hotels and exchange services are limited to changing USD 1,500 per person per month into Mexican pesos. Previously there had been no limit.
The new regulations are part of a new strategy by Mexican officials to combat money laundering and drug trafficking. Drugs head north while billions of dollars in cash are smuggled back into Mexico and into the pockets of drug cartels. Restricting purchases in USD will make it more difficult for drug traffickers to spend the proceeds of their cash-based crime.
Mexican authorities had originally wanted a purchase limit of USD 30 but will test the $100 limit initially.
