What’s the Currency Called in Mexico- A Comprehensive Guide to the Mexican Peso
What is the currency called in Mexico? The currency of Mexico is known as the Mexican Peso, abbreviated as MXN. This currency is widely used throughout the country for all transactions, including buying goods and services, as well as for personal and business exchanges. The Mexican Peso has a rich history and plays a significant role in the country’s economy.
The Mexican Peso was introduced in 1993, replacing the previous currency, the Mexican Unidad de Moneda, which was in use since 1992. The Peso was named after the Spanish word “peso,” which means “weight” in English. This name reflects the historical practice of weighing precious metals to determine their value.
The Mexican Peso is subdivided into 100 smaller units called centavos. However, the use of centavos has decreased over the years, and many businesses and transactions now operate exclusively in Peso denominations. The Peso is available in various denominations, including coins and banknotes.
Coins come in denominations of 1, 2, 5, 10, 20, and 50 pesos, while banknotes are available in denominations of 20, 50, 100, 200, 500, and 1,000 pesos. The design of the coins and banknotes often features Mexican historical figures, landmarks, and symbols, showcasing the country’s rich cultural heritage.
The exchange rate of the Mexican Peso fluctuates constantly due to various economic factors, including trade balances, tourism, and foreign investment. It is essential for visitors and residents to keep an eye on the exchange rate to make informed financial decisions.
The Mexican Peso has faced several challenges over the years, including inflation and economic instability. However, the country’s central bank, the Banco de México, has implemented various measures to stabilize the currency and maintain economic growth.
In conclusion, the currency called in Mexico is the Mexican Peso (MXN), which plays a crucial role in the country’s economy. Understanding the Peso’s history, denominations, and exchange rate is essential for anyone conducting business or traveling to Mexico.
