You can use now pesos in the US

[tradermaji]

Quote from MajorUrsa:

I'm curious why this would be illegal. In Europe, before we had the EUR, it was common in every border region to have two currencies. Even now, Switserland and the UK, who stiill have their old currencies, accept EUR's in most shops that are frequented by 'foreigners'.

BTW. Thread title should read "You can now use pesos in the US". Or was that modern mex-speak ?

Ursa..

During my recent visit, I never even converted Euros to Swiss Francs. I paid for in Euros, but got the change back in SFs mostly. I am not sure if it is legal, but it sure convenient.

The money converting offices at the airports and banks just kill you with the spread. It was much cheaper to use the ATM. The fee is not that high and conversion is much more favorable... read as low spreads. The highest fee I paid was something like 4 Euros when I withdrew cash from an ATM in Venice. Of course, you should plan on withdrawing atleast a couple of hundred dollars/euros, or else the fees will become a high percentage.

 

[Pekelo]

Quote from MajorUrsa:

I'm curious why this would be illegal. In Europe,

But this is the USA, so it is irrelevant how it works over there as legality goes.

As it was mentioned, this is a business decission, based on 2 things:

1. The spread is quite wide, 12 instead of 11, making it an instant 9% gain.

2. Most people with extra change from the visited country tend to throw away or waste it on some instant purchase. In airports they even have large charity balls full of foreign money. Thus it is also a good decission based on psychology......

 

[Sam321]

But this is not about throwing away loose change in border towns. It’s about excepting pesos in places like Dallas, TX. Pizza Patron is doing it in all of their stores. I think Pizza Patron made this business decision based on what Hispanic groups and “public relations” firms tell them. Sure, more Mexicans are holding onto pesos, but why would they buy Pizza with pesos in Dallas at a ridiculous exchange rate?

If they’re astute enough to arbitrage the cost of living between the US and Mexico by sending their chump change earnings to their families in Mexico, I’m sure they know how to go to a local bank to exchange their pesos for dollars at a better rate, before they go to Pizza Patron to buy a slice.

Quote from Pekelo:

But this is the USA, so it is irrelevant how it works over there as legality goes.

As it was mentioned, this is a business decission, based on 2 things:

1. The spread is quite wide, 12 instead of 11, making it an instant 9% gain.

2. Most people with extra change from the visited country tend to throw away or waste it on some instant purchase. In airports they even have large charity balls full of foreign money. Thus it is also a good decission based on psychology......

 

[Pekelo]

Quote from Sam321:

Sure, more Mexicans are holding onto pesos, but why would they buy Pizza with pesos in Dallas at a ridiculous exchange rate?

Well, you have to ask Pizza Patrone. They had this business idea, time will tell if it works. My guess is that if you just came over and don't plan to go home anytime soon, you might as well spend your pesos....

 

[tradermaji]

Quote from Pekelo:

Well, you have to ask Pizza Patrone. They had this business idea, time will tell if it works. My guess is that if you just came over and don't plan to go home anytime soon, you might as well spend your pesos....

The owner claims it is part of their business model to stand out to a large section of their clientele in a fiercely competitive market. Like you said, only time will tell the validity of this model.

 

[BSAM]

Como esta? No habla usted?

I keep practicing. Our U.S. Supreme Court could come out with some kind of mandatory language implementation at any time. You never know. You better be ready.