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It appears the restictions on the use of American dollars is working…sort of.

You are not going to be able to make a big purchase with American Greenbacks and at some outlets they won’t even take them.

But others appear to be flaunting the law if it is not a flagrant amount.

The rule that was put in place was meant to curtail money laundering by the drug cartels that could make major purchases from the proceeds of their crimes with good, hard U.S. currency.

For tourists, and Mexicans, who do not regularly bank in Mexico, exchanges in United States dollars are limited to a maximum of $1,500 per month.

In addition, a number of Mexican jurisdictions have capped individual cash purchases at $100. But I repeat…Some vendors may refuse dollars altogether.

It is hoped that the measure will help stem the staggering $10 billion per year in suspicious cash flows linked to drug trafficking.

Canadian dollars appear to be unaffected by the ban. Given the strength of our dollar at the present time, and the exchange rate you would have to pay for acquiring U.S. dollars, using our own bills may be the best advice.

Here is the official word from one of our major Canadian tour operators with flights from Canada.

“Please note that the Mexican government has put in place a new rule that applies to the exchange of U.S. dollars to Mexican pesos.

This new measure applies to money exchanged in banks and in currency exchange offices only, and does not apply to withdrawals made from automated tellers (ATMs), or to purchases and transactions made with credit cards or debit cards.

It is possible that certain hotels and/or businesses may refuse payments made with U.S. dollars in cash. Therefore, we recommend that clients carry a credit card, a debit card, and/or Mexican pesos and/or Canadian dollars.

For more information, please consult the notice issued by foreign affairs and international trade of Canada at: http://www.voyage.gc.ca/countries_pays/report_rapport-eng.asp?id=184000.”

Go online to http://www.journeystravelgear.com/ to read my latest destination stories on Mexico and particularly Playa del Carmen