Mexican Peso

MXN - Mexican Peso

The Mexican Peso (MXN) is the official currency of the United Mexican States - a federal republic located in North America. The symbol for the Mexican Peso is $ or Mex$ and the ISO 4217 code is MXN. One Mexican Peso is divided into 100 centavos (¢) and is issued and managed by the Bank of Mexico.

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MXNMXN
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EUREUR
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The history of the formation and development of the Mexican Peso (MXN)

In the 16th century, when Spain invaded Mexico, they introduced the Peso de Ocho in this country. This was a very important silver coin in international trade at that time. This coin became an important foundation for the formation of the modern Mexican Peso.

In 1821, after Mexico gained independence from Spain, the country began issuing its own currency. However, throughout the 19th and 20th centuries, the Peso underwent many changes, especially after the economic crisis and monetary reform in 1993.

In 1863, the Mexican government removed three zeros from the currency, creating the latest version of the peso (MXN) that is used today.

Mexican Peso (MXN) Denominations

Currently, the denominations of the Mexican Peso (MXN) being issued include both banknotes and coins: 

Mexican Peso banknotes

  • Commonly used: $20, $50, $100, $200, $500, $1000

  • Less commonly used: $10

Banknotes are typically designed with historical figures, cultural symbols, and distinctive emblems of Mexico.

Mexican Peso coins

  • Commonly used: $1, $2, $5, $10, $20

  • Rarely used: $0.05, $0.10, $0.20, $0.50, $50, $100

Coins are usually made from metal materials commonly used for small transactions. 

Mexican Peso (MXN) exchange rate

Currently, the exchange rate of the Mexican Peso against the USD is:

1 USD = 17.44 MXN

The MXN is not among the lowest-valued currencies in the world, but it is also not considered a strong currency. Compared to other currencies, the Mexican Peso is in the average range, indicating that the country is facing similar challenges as many other countries in the region.

Factors affecting the value of Mexican Peso (MXN)

The value of the Mexican Peso is influenced by many economic, political, and social factors. Here are the main factors:

Monetary policy

The Central Bank of Mexico adjusts interest rates to control inflation and maintain the stability of the Peso. High interest rates will attract foreign investors, increasing the value of the Peso and vice versa.

Economic situation

If the economy grows strongly and industrial production develops, it will boost confidence in the Peso, thereby increasing its value. Conversely, if there is an economic recession, it will lead to a decrease in the value of this currency.

International trade

Mexico is one of the United States' major trading partners. Therefore, factors such as trade deficits, oil exports, and changes in the trade balance will directly affect the value of the Peso.

Political situation

Political instability, corruption, or uncertain policies will cause investors to be concerned, leading to a decrease in the value of the Peso. Conversely, if the political situation is stable and economic reforms are positive, it will boost the value of the currency.

Inflation index

High inflation rates often reduce the purchasing power of the Peso, thereby negatively affecting its value. Effective inflation control measures will help keep the value of the currency stable.

The influence from the global market

Mexico is a major oil-producing country. Therefore, fluctuations in oil prices, especially in the context of the global economy, will affect the value of the Peso. 

Foreign investment

Factors such as the attractiveness of investments in Mexico and tax policies also affect the flow of foreign investment. A significant inflow of capital can enhance the value of the Peso.

The value of the Mexican Peso reflects the complex economy and political situation of this country. Understanding these factors not only provides investors with deep insights into Mexico's financial situation but also helps in making smarter decisions. Regularly monitoring and evaluating these influencing factors on the Mexican Peso is the key to seizing opportunities and minimizing investment risks.

Future of the Mexican Peso (MXN)

The future of the Mexican Peso (MXN) is intricately tied to a myriad of economic, political, and global factors that shape its trajectory within the international financial landscape. As Mexico continues to navigate the complexities of a post-pandemic recovery, the performance of the Peso will be heavily influenced by the strategic decisions made by the Mexican government in its fiscal and monetary policies, as well as the evolving dynamics of trade relations, particularly with its most significant trading partner, the United States. Moreover, the Peso is expected to react to fluctuations in commodity prices, given Mexico's status as a substantial exporter of oil and other natural resources.

The impact of inflationary pressures and interest rate adjustments by the Bank of Mexico will also play a crucial role in determining investor confidence, subsequently influencing capital flows into the nation. As the country strives to position itself as a leader in sectors such as manufacturing and renewable energy, alongside ongoing challenges such as political instability and security concerns, the robustness of the Peso may ultimately hinge on Mexico's ability to foster a conducive environment for foreign investment. In this multifaceted context, it is imperative for stakeholders to remain vigilant of both domestic and global economic indicators, as they will provide critical insights into the potential appreciation or depreciation of the Peso in the foreseeable future.

Mexican Peso - Stats

Name
Mexican Peso
Symbol
$
Minor unit
2
Minor unit symbol
centavo
Top MXN conversion
MXN to EUR

Mexican Peso - Profile

Coins
centavo5 , centavo10 , centavo20 , centavo50 , centavo100
Bank notes
$20 , $50 , $100 , $200 , $500 , $1000
Central bank
Bank of Mexico
Users
Mexico

Frequently asked questions about Mexican Peso

Live Currency Rates

CurrencyRateChange
MXN/USD
0.04846
MXN/EUR
0.04699
MXN/GBP
0.03901
MXN/EUR
0.04699
MXN/CAD
0.07001
MXN/AUD
0.07796
MXN/JPY
7.61969
MXN/INR
4.15708