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Old 02-18-2012, 01:35 PM   #1
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Shopping in Cozumel and Grand Cayman

I was wondering if it is recommended to use there currency and not the american dollor?

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Old 02-18-2012, 01:37 PM   #2
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We shopped in Cozumel during my DD's senior trip. We used American currency. We loved not having to pay any sales tax.
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Old 02-18-2012, 02:27 PM   #3
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In general there's no benefit to using local currency for transactions that can be charged. Spend cash, and you have no recourse for a purchase gone bad. With a credit card you have some added protections. And, of course, the less cash you're carrying, the better.

You'll be paying something for currency exchange, whether using a credit card, or exchanging cash. However, on-the-spot currency exchange fees tend to be higher than equivalent credit card fees.

When you charge, you pay the currency fees only for what you spend. When you exchange cash for cash, you tend to have local currency left over at the end, and you must pay a second exchange fee to convert it back to dollars. If you've changed enough dollars to make major purchases, you'll probably have more cash to exchange back to dollars than if you only exchanged enough to buy small stuff from street vendors.

The US dollar is still the favored currency around the world, so, if anything, you'll get a better deal using dollars than local currency, especially on Caribbean islands. Islanders often make major purchases from U.S. sources, whether wholesale merchandise or home furnishings, so having dollars in the bank saves them currency exchange fees, too.

While it's always possible to get a bad deal when the dollar price is marked on the goods (a high "exchange rate"), it can also go the other way. On the French side of St. Martin, (it's Sint Maarten on the Dutch side), where the Euro is the "local" currency, I've seen shops offering to accept dollars for Euro-marked goods on a one-for-one basis. Considering one Euro is usually worth substantially more than one dollar, that's quite a deal.

Whether you exchange some cash for local currency or not, be sure to have small denominations available for tips and street vendor purchases. You can almost be certain that they'll claim they can't make change.
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