Mexican peso

Mexican peso

ISO 4217
Code	MXN (numeric: 484)
Subunit	0.01
Unit
Plural
Symbol	$ ‎
Nickname

The Mexican peso (symbol: $; code: MXN) is the official currency of Mexico. It is one of the most traded currencies in the world and the most traded in Latin America. The peso is subdivided into 100 centavos, represented by the symbol ¢.

History

The Mexican peso has a rich history that dates back to the colonial period. The word "peso" means "weight" in Spanish, and the currency was originally based on the Spanish dollar, also known as the "piece of eight," which was widely used in the Americas and Asia during the 16th to 19th centuries.

Colonial Era

During the colonial era, the Spanish Empire minted silver coins in Mexico, which became known as pesos. These coins were widely circulated and became a standard currency in the region.

19th Century

In the 19th century, Mexico gained independence from Spain, and the newly formed nation continued to use the peso as its currency. The first Mexican peso was introduced in 1821, and it was initially pegged to the silver standard.

20th Century

The 20th century saw significant changes in the Mexican peso. In 1905, the peso was revalued, and a new peso was introduced, which was equivalent to 1000 of the old pesos. This was part of a broader monetary reform to stabilize the currency.

In 1993, another revaluation occurred, and the "nuevo peso" (new peso) was introduced, which was equivalent to 1000 of the old pesos. The "nuevo" was later dropped, and the currency returned to being called simply the "peso."

Current Usage

Today, the Mexican peso is a free-floating currency, and its value is determined by the foreign exchange market. It is widely used in Mexico for all types of transactions, from everyday purchases to large-scale business deals.

The Bank of Mexico is responsible for issuing and regulating the peso. The bank issues coins in denominations of 5, 10, 20, and 50 centavos, and 1, 2, 5, 10, and 20 pesos. Banknotes are issued in denominations of 20, 50, 100, 200, 500, and 1000 pesos.

Economic Significance

The Mexican peso is a significant currency in the global economy. It is the most traded currency in Latin America and is often used as a benchmark for other currencies in the region. The peso's value can be influenced by various factors, including economic indicators, political events, and changes in the global financial markets.

Exchange Rates

The exchange rate of the Mexican peso can fluctuate based on market conditions. It is commonly traded against major currencies such as the United States dollar, Euro, and Japanese yen.

Also see

• Bank of Mexico
• Economy of Mexico
• Currency of Latin America
• Foreign exchange market