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Moving money in and out of Mexico: the FIX rate, dollar accounts, dividends abroad and cash at the border

Last verified: 2026-10-26 · Status: Stable

Foreign currency is not legal tender in Mexico. A debt in dollars that is payable in Mexico can be settled in pesos at the FIX rate that Banco de México publishes in the Diario Oficial, and the parties cannot waive that rule. Any company domiciled in Mexico may hold dollar demand deposits at a Mexican bank, while individuals may do so only if they live in the northern border strip or in Baja California or Baja California Sur. A Mexican company paying dividends to a foreign shareholder withholds 10 percent (a tax treaty can lower it), and anyone carrying more than USD 10,000 in cash or checks into or out of Mexico must declare it to customs.

USD conversions use MXN 18.5026 per US dollar, the US Federal Reserve H.10 noon buying rate in New York for 16 October 2026 (FRED series DEXMXUS), the latest observation available when this page was verified. Legal conversions in Mexico use the Banxico FIX, which differs slightly. Conversions are for orientation only.

Key facts

Foreign currency is legal tender	No; foreign currency obligations payable in Mexico can be settled in pesos at the official rate Ley Monetaria arts. 8 and 9, as of 2026-10-26 · in force
Official rate to settle dollar obligations payable in the country	FIX, determined by Banco de México and published in the DOF the next banking business day; payments use the rate published the banking day before payment Banxico Circular 3/2012 arts. 171 and 172, as of 2026-10-26 · in force
Locally domiciled companies may hold USD demand deposits at local banks	Yes Banxico Circular 3/2012 art. 46, section I, paragraph b), as of 2026-10-26 · in force
Individuals may hold USD demand deposits at local banks	Only if domiciled within 20 km of the northern border or in Baja California or Baja California Sur Banxico Circular 3/2012 art. 46, section I, paragraph a), as of 2026-10-26 · in force
Withholding tax on dividends paid to foreign residents (domestic rate, before treaties; profits from 2014 onward)	10 %LISR art. 164, section I, fifth paragraph; RMF 2026 Annex 3, criterion 36/ISR/PI, as of 2026-01-09 · in force
Cash and checks carried across the border must be declared above	10000 USDLey Aduanera art. 9, as of 2026-10-26 · in force
Fine for failing to declare cash and checks over the threshold, as a share of the excess	20 to 40 %Ley Aduanera arts. 184 section VIII and 185 section VII, as of 2026-10-26 · in force
Mexico and Argentina double tax agreement entry into force	2017-08-23 dateArgentine approval Ley 27.334, Boletín Oficial 21 December 2016, as of 2026-10-26 · in force

The rule

1. Pesos discharge dollar debts payable in Mexico, and the rule cannot be waived. Foreign currency is not legal tender in Mexico unless a law expressly provides otherwise. Payment obligations in foreign currency, whether contracted in Mexico or abroad, that are to be performed in Mexico are discharged by delivering the equivalent in pesos at the exchange rate in force at the place and date payment is due, and Banco de México sets the rules for that rate. Two exceptions matter in practice: payments from funds transferred from abroad through Banxico or a bank must be made in the currency transferred, and foreign currency bank deposits are repaid in that currency when the debtor expressly agreed to pay in foreign currency under rules the banking authorities publish. Article 9 makes these provisions non waivable, so any contract clause to the contrary is void.
Cost to do it: No fee. The economic cost is exchange rate risk: the creditor bears any move in the peso between the contract date and the payment date unless the contract or an exception above applies.
Example: A Mexican customer owes a supplier USD 250,000 under a contract payable in Mexico City. The customer may pay in pesos: at a rate of 18.5026 that would be MXN 4,625,650. If the peso weakens before payment, the customer must hand over more pesos for the same dollar amount; the supplier receives pesos and bears the cost of converting them back into dollars. / USD 250,000 owed; at 18.5026 the peso amount is MXN 4,625,650.Ley Monetaria de los Estados Unidos Mexicanos, DOF 27 July 1931 (Chamber of Deputies consolidated text, latest reforms DOF 19 January 2026), Arts. 8 and 9, 1931-07-27 official text · verified 2026-10-26

2. The FIX: how the legal settlement rate is set and which day's rate applies. Every banking business day Banco de México takes dollar buy and sell quotes for settlement two banking days later from FX trading platforms or similar electronic sources in three windows (9:00 to 9:59, 10:00 to 10:59 and 11:00 to 12:00), averages them, and publishes the resulting rate in the Diario Oficial de la Federación (DOF) on the next banking business day. Dollar obligations payable in Mexico are settled in pesos at the rate Banxico published in the DOF on the banking business day immediately before the payment day. For other currencies, the peso equivalent is calculated using that currency's international cross rate against the dollar on the payment day, and banks must give those quotes on request.
Cost to do it: No fee to use the FIX. Naming it in contracts avoids disputes over which rate settles a dollar debt in Mexico.
Example: An invoice for USD 100,000 payable in Mexico on a Tuesday is settled in pesos at the FIX that appeared in the DOF on Monday, the previous banking business day. At an illustrative rate of 18.5026 the payment would be MXN 1,850,260. / USD 100,000; at 18.5026, MXN 1,850,260.Banco de México Circular 3/2012, Disposiciones aplicables a las operaciones de las instituciones de crédito y de la Financiera Nacional de Desarrollo Agropecuario, Rural, Forestal y Pesquero, DOF 2 March 2012 (Banxico compiled text consulted), Title Three, Chapter V, arts. 165, 166, 171 and 172, 2012-03-02 official text · verified 2026-10-26

3. Who may hold dollar accounts in Mexico. Mexican banks may take foreign currency deposits of two kinds: demand deposits, with or without checks, payable in Mexico, and time deposits payable abroad. Demand deposits are open only to (a) individuals domiciled in towns within a 20 kilometer strip along the northern border or in Baja California or Baja California Sur, (b) companies (personas morales) domiciled in Mexico, and (c) accredited foreign government missions, international organizations and their foreign staff, and foreign correspondents. Time deposits payable abroad are open only to companies domiciled in Mexico. Banks must keep proof that the client fits one of these cases. Accounts can be funded by electronic transfers in foreign currency, foreign currency checks payable abroad, or delivery of foreign currency cash, and banks must allow withdrawals by foreign currency transfer and check; demand accounts also allow debit cards, checks and cash withdrawals subject to the branch's banknote supply.
Cost to do it: No regulatory fee. Banks may freely set minimum balances, interest rates and terms on deposits (Circular 3/2012 art. 44); ask your bank for its tariff.
Example: A newly incorporated Mexican S.A. de C.V. with a domicile in Monterrey can open a USD demand account to receive export proceeds and pay dollar suppliers without converting to pesos. Its Mexican resident managing director, living in Mexico City, cannot open a personal USD demand account at a Mexican bank because Mexico City is outside the border strip. / USD 1,000,000 of export receipts can stay in dollars in the company account; converted at 18.5026 they would equal MXN 18,502,600.Banco de México Circular 3/2012, DOF 2 March 2012, text as compiled by Banxico through Circular 11/2017 (DOF 29 May 2017), Section III (Operaciones pasivas en Divisas), arts. 45 to 48, 2012-03-02 official text · verified 2026-10-26

4. Dividends paid to foreign shareholders: 10 percent withholding. Mexican resident companies that distribute dividends or profits to individuals or companies resident abroad must withhold tax at 10 percent of the dividend, give the recipient a statement of the amount distributed and the tax withheld, and pay the tax over with the provisional payment for that month. The 10 percent tax applies to profits generated from 2014 onward; companies must keep separate net tax profit accounts (CUFIN) for profits up to 31 December 2013 and from 1 January 2014, and if they do not, all profits are treated as generated from 2014. The tax administration (SAT) states that the obligation also applies to Mexican companies whose shares trade on recognized foreign markets, and it lists failing to withhold, pay and issue the tax receipt in that case as an improper tax practice. A tax treaty with the shareholder's country can reduce the rate. For a shareholder resident in Argentina, Mexico and Argentina have a double tax agreement in force since 23 August 2017; see The Argentine Thread guide for the Argentine side.
Cost to do it: 10 percent of the gross dividend paid to a foreign shareholder, before any treaty reduction. Remitting the dividend needs no FX permit under the rules on this page; the bank's transfer fee and FX spread apply.
Example: A Mexican subsidiary declares a dividend of MXN 1,850,260 out of post 2014 CUFIN profits to its foreign parent. It withholds MXN 185,026 (10 percent), pays it to SAT with that month's provisional payment, issues the tax receipt and remits MXN 1,665,234 or its dollar equivalent. / About USD 100,000 gross, USD 10,000 withheld and USD 90,000 net to the parent at 18.5026, before any treaty relief.Ley del Impuesto sobre la Renta, DOF 11 December 2013; Anexo 3 de la Resolución Miscelánea Fiscal para 2026 (criterios no vinculativos), DOF 9 January 2026, criterion 36/ISR/PI, LISR art. 164, section I, fifth paragraph; LISR transitional provisions for 2014, Artículo Noveno, section XXX; LISR art. 76, section XI, paragraph b), 2026-01-09 official text · verified 2026-10-26

5. Carrying cash or checks across the border: declare anything over USD 10,000. Anyone entering or leaving Mexico carrying cash, Mexican or foreign checks, payment orders or any other collectible document, alone or combined, worth more than the equivalent of USD 10,000 must declare it to customs on the official forms approved by SAT. Anyone who sends such amounts through international cash in transit or courier companies must tell the company the amount when it exceeds USD 10,000, and those companies must declare to customs what their clients reported. Failing to declare is a customs infraction punished with a fine of 20 to 40 percent of the amount above USD 10,000, and customs may order a precautionary seizure of undeclared amounts above that threshold. The customs agency (ANAM) adds that undeclared amounts above USD 30,000 can lead to 3 months to 6 years in prison, and the excess passes to the Federal Treasury unless its lawful origin is proven.
Cost to do it: Declaring is free. Not declaring costs 20 to 40 percent of the excess over USD 10,000, plus a possible seizure.
Example: A traveler leaves Mexico with USD 25,000 in cash and does not declare it. The excess over the threshold is USD 15,000 (MXN 277,539 at 18.5026), so the fine runs from MXN 55,508 to MXN 111,016. / Excess USD 15,000; fine USD 3,000 to USD 6,000.Ley Aduanera, DOF 15 December 1995, last reform DOF 19 November 2025 (Chamber of Deputies consolidated text), Art. 9 (declaration); art. 184, sections VIII, XV and XVI (infractions); art. 185, section VII (fine); art. 144, section XXX (precautionary seizure), 1995-12-15 official text · verified 2026-10-26

Question	Answer	Rule
Is the dollar legal tender?	No. Dollar debts payable in Mexico can be settled in pesos	Ley Monetaria art. 8
Can the parties contract out of peso settlement?	No. Contrary clauses are void, subject to the statutory exceptions	Ley Monetaria art. 9
Which rate settles a dollar debt?	The FIX published in the DOF on the banking day before payment	Circular 3/2012 art. 172
When is the FIX published?	In the DOF on the banking business day after Banxico determines it	Circular 3/2012 art. 171
Can a Mexican company hold USD at a Mexican bank?	Yes, demand deposits payable in Mexico and time deposits payable abroad	Circular 3/2012 art. 46
Can an individual hold USD at a Mexican bank?	Only residents of the 20 km northern border strip, Baja California or Baja California Sur (plus accredited diplomatic and press cases)	Circular 3/2012 art. 46
Withholding on dividends to a foreign shareholder	10 percent of the dividend, on profits from 2014 onward, before treaty relief	LISR art. 164, section I
Cash or checks carried across the border	Declare above USD 10,000; fine of 20 to 40 percent of the excess if not declared	Ley Aduanera arts. 9, 184 and 185

Mexico FX rules at a glance, verified 26 October 2026 against the official texts cited on this page.

Worked example

A foreign parent's Mexican subsidiary, domiciled in Querétaro, opens a USD demand account at a Mexican bank (allowed for companies domiciled in Mexico under Circular 3/2012 art. 46) and a peso account.
Its US customers pay USD 1,000,000 by wire into the USD account. Because the funds came by transfer from abroad through a bank, Ley Monetaria art. 8 requires them to be paid in the currency transferred, so the company keeps dollars and converts only what it needs for payroll and local taxes. At 18.5026 the full amount equals MXN 18,502,600.
A Mexican distributor owes the subsidiary USD 100,000 under a contract payable in Mexico and pays in pesos at the FIX published in the DOF the banking day before payment, about MXN 1,850,260 at 18.5026. The subsidiary cannot insist on dollars on the strength of a clause excluding the Ley Monetaria, because art. 9 voids such clauses.
At year end the subsidiary pays a dividend of USD 100,000 equivalent (MXN 1,850,260) out of post 2014 CUFIN profits. It withholds 10 percent, MXN 185,026 (about USD 10,000), pays it to SAT with that month's provisional payment and remits MXN 1,665,234 (about USD 90,000) to the parent, before any treaty reduction the parent can claim.
A director flying home carries USD 9,000 in cash and a USD 4,000 check from a customer. The total of USD 13,000 exceeds USD 10,000, so it must be declared at the departure customs office; otherwise the fine would be 20 to 40 percent of the USD 3,000 excess.

Step by step

1. Decide which accounts you need. Open a peso account and, for the Mexican company, a USD demand account; banks will ask for proof that the company is domiciled in Mexico (Circular 3/2012 art. 46). Foreign staff living outside the border strip should keep their personal dollar savings outside the Mexican banking system or in pesos.
2. Write the exchange rate into every dollar contract. If payment is to be made in Mexico, say that the peso equivalent is calculated at the FIX published in the DOF on the banking day before payment, which is what the law applies anyway. If you need to receive dollars, take legal advice on whether the payment can fall within an exception in Ley Monetaria art. 8, such as a transfer of funds from abroad through a bank.
3. Before declaring a dividend, confirm that the profits come from the CUFIN account for 2014 onward or from pre 2014 CUFIN, and check whether the shareholder's tax treaty lowers the 10 percent rate; gather the shareholder's proof of tax residence before payment.
4. On payment, withhold the tax, issue the electronic tax receipt (CFDI) showing the amount paid and tax withheld, pay the tax with the monthly provisional payment and wire the net amount.
5. For travel, add up all cash, checks and payment orders each person carries. If the total is above USD 10,000, declare it on the SAT form at the customs office of entry or departure.
6. Recheck this page and the official texts before large transactions; the verified date is shown at the top.

Common traps

Relying on a clause that waives peso settlement. Ley Monetaria art. 9 voids any agreement contrary to art. 8, so a Mexican debtor can still pay a dollar debt payable in Mexico in pesos unless a statutory exception applies.
Using the wrong day's FIX. The FIX that settles a payment is the one published in the DOF on the banking business day before payment, not the rate Banxico determines on the payment day itself (Circular 3/2012 arts. 171 and 172).
Promising expatriate staff a Mexican dollar account. Only individuals domiciled in the northern border strip or in Baja California or Baja California Sur qualify for USD demand deposits, apart from accredited diplomatic, international organization and press staff (Circular 3/2012 art. 46).
Skipping withholding because the shares trade abroad. SAT lists as an improper practice the failure to withhold and pay the 10 percent tax and issue the receipt when dividends are paid on shares listed on recognized foreign markets (RMF 2026 Annex 3, criterion 36/ISR/PI), and advisers who take part are also covered.
Not keeping separate CUFIN accounts. If a company does not keep its pre 2014 and post 2014 CUFIN accounts separately, all distributed profits are treated as generated from 2014 and bear the 10 percent tax (LISR transitional provisions for 2014, Artículo Noveno, section XXX, as summarized by SAT).
Splitting the border threshold wrongly. The USD 10,000 test covers cash, checks, payment orders and other collectible documents combined, so a traveler with USD 6,000 in cash and a USD 5,000 check must declare (Ley Aduanera art. 9).
Assuming a courier shipment avoids the declaration. Senders using international cash in transit or courier companies must report amounts above USD 10,000 to the company, and the company must declare them to customs (Ley Aduanera art. 9, second and third paragraphs).

Sources

Related: Mexico country profile · live dashboard · central bank and release calendar · our posts on X · where Argentina is involved, see The Argentine Thread guide

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