As there is often fluctuation in the value of Mexican pesos, you should keep an eye on the exchange rate while traveling in Mexico. In 2001 and early 2002 the exchange rate more or less stabilized at around nine pesos to the US dollar. It is currently over ten pesos to the dollar.

Banks usually offer the best exchange rate for buying pesos. They all offer the same rate, set by the Bank of Mexico. Banks accept a wide range of foreign currencies: Swiss francs, German marks, British pounds, Japanese yen, and Canadian dollars. Cash and traveler's checks are accepted. Credit cards (Visa and MasterCard) are widely accepted in Baja at the large hotels, most restaurants and at some shops, especially around Cabo San Lucas. However, it is always a good idea to ask in advance when calling a restaurant to make your reservations.

Many banks now accept MasterCard or Visa debit cards as well as ATM cards. Most Mexican banks now charge nominal fees for withdrawing cash from their ATMs with cards from other banks.

The Mexican government collects an "impuesta al valor agregado" (IVA) or "value added tax" of 10 percent on all hotels, restaurants, international phone calls, goods and services in Baja. Hotels add an additional two percent lodging tax. Most of the time rates will be quoted including the tax, but this is good to be aware of.