What money does Mexico use? The official currency of Mexico is the Mexican Peso (MXN), which is abbreviated as “MXN” and symbolized as “MX$” or “Peso.” The Peso has been the country’s currency since 1993, replacing the previous peso, which was in use since 1863. The Mexican Peso is one of the most widely used currencies in Latin America and is the 14th most traded currency in the world.
The Mexican Peso is subdivided into 100 centavos, although the use of centavos has become less common in daily transactions due to inflation. The currency is issued by the Banco de México, the country’s central bank, which also regulates the country’s monetary policy. The Banco de México has been in operation since 1932 and is responsible for maintaining price stability and controlling inflation.
Banknotes and Coins
Mexican Peso banknotes come in denominations of 20, 50, 100, 200, 500, and 1000 pesos. These banknotes feature various Mexican historical figures and landmarks, including the Mexican Independence Monument, the National Palace, and the Aztec Sun Stone. Coins, on the other hand, are available in denominations of 5, 10, 20, and 50 centavos, as well as 1, 2, and 5 pesos. The coins often depict animals native to Mexico, such as the jaguar and the Mexican wolf.
Exchange Rates and Economic Factors
The exchange rate of the Mexican Peso is subject to fluctuations due to various economic factors, including trade relations, tourism, and investment. The Peso has historically been vulnerable to external shocks, particularly from the United States, Mexico’s largest trading partner. As a result, the exchange rate can be volatile, affecting the cost of imports and exports, as well as the value of remittances sent by Mexican workers living abroad.
Using the Peso in Mexico
When visiting Mexico or conducting business there, it is essential to use the local currency, the Mexican Peso. Most transactions in the country are conducted in cash, so it is advisable to have some local currency on hand. ATMs are widely available in urban areas, but it is always a good idea to check the exchange rates and fees before withdrawing money. Credit cards are also accepted in many establishments, but it is always best to have some cash on hand as a backup.
Conclusion
In conclusion, Mexico uses the Mexican Peso (MXN) as its official currency. The Peso is issued by the Banco de México and is subdivided into 100 centavos. Banknotes and coins are available in various denominations, and the currency is subject to exchange rate fluctuations. Whether visiting Mexico or conducting business there, it is important to be familiar with the local currency and how to use it effectively.
