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Facts and History Bits About Mexican Peso

4 min read

Mexico - one of the three states located on the mainland of North America, is the southernmost country of the continent. Peso is the national currency of Mexico, issued by the national central bank, called the Bank of Mexico. Those who are interested in trustworthy Mexican peso accepting stylish online casino sites should know the history of the currency and its features in order to be competent in this field. The official currency of Mexico is currently represented by a new monetary unit called the Mexican peso and has the international symbol code MXN.

The Mexican peso passed a long period of its formation. Initially, the Mexican peso was used along with the dollar in most of North America. The name of the national currency of Mexico is very typical for the post-Spanish countries and comes from the name of the Spanish silver coin, common in the late Middle Ages in Spain and its colonies.

History of Mexican Peso

The Mexican peso was introduced into circulation during the period of the national liberation struggle for independence and had a parallel circulation with the Spanish peso. Later, during the periods of the existence of Mexico, both the empire and the republic, he underwent several devaluations caused by civil wars and interventions in the country. This led to a complete loss of the gold component of this currency.

Between 1536 and 1888, 11 mints of Mexico were engaged in minting, and the peso became a regional currency far beyond the borders of one country. In the same period, the national currency of Mexico experienced several waves of inflation, which subsequently influenced the size of the coin and the type of metal from which it was cast. However, this did not lead to monetary reform. In coins, the number of precious metals was constantly decreasing, which led to the loss of international status and the prevalence of pesos in the world.

In 1980, the national currency of Mexico was subject to hyperinflation. The authorities took a full 10 years to carry out a monetary reform and reset the exorbitantly high quotes of the Mexican peso. So, in 1993, new Mexican pesos were issued at the rate of 1: 1000 to the old ones. Three years later, the decision of the authorities to give the currency a shorter name - the Mexican peso.

Payments with Mexican Peso

Due to the impressive share of the shadow economy, cash payment remains common in Mexico. Nevertheless, non-cash payment is also gradually developing and popularizing. It is important to note that in Mexico inflation is quite high, which devalues the national currency and encourages local residents to buy gold or US dollars. Now in Mexico, the Mexican peso floating rate regime, which depends on inflation indicators, is used for exchange rate regulation. Now the exchange rate of the Mexican peso is such that when exchanging for 1 US dollar, you can get almost 19 pesos, for 1 Euro - more than 21. 

Mexican Peso Banknotes and Coins

There is an interesting feature in the design of the banknote - a transparent element in the shape of a butterfly. This was achieved thanks to the material from which banknotes are made - high-quality polymer. The Mexican peso icon is exactly the same as the American dollar, and the centavo uses the same sign as in US cents. These signs arose originally in Mexico and only then began to be used in the USA.

1 Mexican peso consists of 100 centavos. The Bank of Mexico, which manages the monetary issuing policy in the country, issued circulating banknotes in denominations of 20, 50, 100, 200, 500 and 1000 Mexican pesos. Coins with a nominal value of 5, 10, 20, and 50 centavos, as well as 1, 2, 5, 10, and 20 pesos, are also minted and in monetary circulation. However, in the hands of the inhabitants of Mexico, there are almost no coins of 5.10 and 20 centavos because of their low cost - in retail outlets around the price to 50 centavos. The Mexican peso is considered one of the most protected currencies in the world due to a large number of security signs and elements.