Mexico putting limit on purchases in dollars
Sat, 11 Sep 2010 05:43:53 GMT —
Rio Grande Valley residents and visitors who go shopping south of the border will soon have pay in pesos for purchases worth more than $100 dollars.
Starting on September 15th, Mexico will require that purchases for goods and services worth more than $100 American dollars will have to be made in pesos.
The move is part of a new strategy by federal officials to combat money laundering and drug trafficking.
Mexico is in the grips of a brutal drug war that has left more that 28,000 dead in the past four years.
Drugs head north while billions of dollars in cash are smuggled back into Mexico and into the pockets of drug cartels.
Mexico recently placed a bank deposit limit of $10,000 American dollars as part of a strategy to combat money laundering.
Officials are hoping the purchase limit of $100 American dollars will also make it harder for drug traffickers to spend their ill-gained profits.
Mexican authorities had originally wanted a purchase limit of $30 American dollars but decided on a $100 dollar limit.
Business owners in Reynosa said the $100 dollar limit is better for vendors, restaurants and hotels along the border and northern Mexico where American dollars are readily accepted alongside Mexican pesos.