The currency used in Mexico is the Mexican Peso. Many people make the mistake of taking American dollars to Mexico, which is a concept from before the Mexican currency was revalued in the 1980s. Mexican retailers and service people will take American dollars as a courtesy, but they prefer Pesos (please see note at end of paragraph about Northern Mexico). It is common courtesy, when traveling to any foreign country, to use the national currency of that country. It is arrogant to expect them to take your home currency. The common misconception is that the American dollar is revered and special for them, but it isn't. For instance, why one would convert Canadian dollars into American dollars to travel to a country that uses the Mexican Peso... it is baffling. (Note: In Northern Mexico including all of Baja, mechants freely accept US dollars, and it is not offensive to them; just be sure that the exchange rate is fair as it is often rounded off to 10-1. However the best exchange rate is obtained by using a credit card or getting cash in pesos from an ATM.)
Before traveling to Mexico, use a currency exchange service to get some Mexican Pesos in cash. (Note: it is very common that currency exchanges do not give good exchange rates; a currency exchange in an airport would be best.) You can always access your money at home through the many ATM bank machines available. It is recommend taking a few hundred in travelers cheques in your home currency, for emergency purposes, and using your debit card for the rest. If you get 500$ dollars worth of pesos before you leave your home country you will have plenty of money on hand when you arrive, This makes it nice for tipping the bellman, among others, after he helps you with your luggage at the hotel, etc. It is a nice gesture to tip your hotel maid daily because you may have a different maid some days. or worse, if you had great maid service the whole trip and leave a tip on the last day, it might be your maids day off and she will never see the money. Leaving 20 to 60 peso's is adequate, depending on the level of service. If your maid stocks your mini bar then leave 20 to 40 pesos in the mini bar to show your appreciation for leaving a little extra. The maid will take the money ONLY if it is placed on your pillow in your room. (or inside the mini bar as mentioned). All other money will be left untouched. It is also nice to tip for good service as you would at home; however, the accepted tip amount is 10 to 12%, whereas at home in Canada the standard tip is 15 to 20% depending on the service. Even though All-inclusives say that tips are included, it is always appreciated in Mexico if you tip for good service, whether it be the bar, restaurant, or other service. The only exception are taxis. If you negotiate a price with your cab driver, pay only that amount, as he will have ensured there is a gratuity built into his negotiated price.
