Mexican Peso. History and useful information about the currency of Mexico

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Mexico is famous for its magnificent resorts, many attractions and one of the oldest monetary units in the world. This country attracts many tourists from all over the world. Going to Mexico, it will not be superfluous to first learn about the local currency - the Mexican peso.

History of the Mexican Peso

The history of the Mexican peso dates back to the 15th century, when silver coins first appeared on the territory of today's Mexico. However, after the conquest of territories in the New World by Spain, a single currency, the real, was put into circulation here. This monetary unit was the main payment instrument in Mexico until 1821, when the state gained independence. After receiving sovereignty, the Mexican peso returned to circulation. Since 1825, the National Bank of Mexico, established in the same year, has been issuing the peso.

It will be by the way to say that the first banknotes of the Mexican peso appeared a little earlier, namely in 1813. Then they began to print banknotes on cardboard, which was caused by a shortage of silver among the colonizers of Mexican territories.

Gold Rush

By the beginning of the 20th century, Mexico had become one of the centers of gold mining. Supported by impressive reserves of this precious metal, the Mexican peso occupies the main place in Latin America and plays the role of the currency of various states in the region.

It should be noted that even the First World War did not cause any significant damage to the Mexican peso, which showed enviable stability until 1970. The "golden" pesos were put into circulation in 1904. They replaced silver coins and remained legal tender until 1931, after which they were abolished. A legislative act of July of that year abolished the circulation of gold pesos and introduced paper notes into circulation. This decision met with resistance from Mexican citizens. They believed that using paper money was inconvenient. Also, unlike gold coins, peso notes could not be exchanged for gold.

The oil crisis in the last quarter of the 20th century hit the Mexican economy hard, and the state government was forced to default. The Mexican peso exchange rate did not remain aloof from these events. Inflationary processes developed with such rapidity that the National Bank simply did not have time to print new money. It was possible to stabilize the Mexican peso only in 1993, thanks to the denomination of the national currency. New monetary units were exchanged for old-style signs in the ratio of 1 to 1000.

Mexican currency these days. Information fortourists

Tourists and travelers should keep in mind that plastic cards of the world's major payment systems can be used on the territory of airports, hotels, resorts, large shopping centers and other infrastructure facilities. Mexico is not just a big country. This state is part of the G20. The development of technologies is at a high level here. But at the same time, we should not forget that you always need to have cash with you. For example, to buy souvenirs in the market or in a small private shop.

Most Mexican bank branches are open exclusively on weekdays from 9:00 to 18:00. True, in the resort areas of the country there are institutions in which it is possible to cash out or exchange money until midnight. In addition, you can purchase the desired currency at exchange offices that are marked with the inscription casas de cambio.

Mexican peso notes

Many visitors, visiting Mexico, are faced with one curious feature. The fact is that the National Bank of this country issues two series of peso banknotes. The banknotes bear images of various prominent personalities who made Mexico famous.

For example, the 500 peso Series D features General Ignacio Zaragoza, while the same denomination of Series F features the artist Diego Rivera. Today, Mexican pesos are used in denominations of ten, twenty, fifty, one hundred, five hundred and one thousand. In addition, five, ten, twenty and fifty centavos coins are used.(bargain money).

Mexican peso exchange rate

The most favorable quotes for tourists at airports. Therefore, it is advisable to stock up on the necessary amount of cash pesos in advance if the plans include a vacation in a small remote settlement. It should be noted that in Mexico, US dollars are accepted as a payment instrument almost everywhere. True, at the same time, the conversion conditions are not very favorable. The Mexican Peso is currently trading at 20.89 to the US Dollar at 20.89 to 1.

In conclusion, it must be emphasized that in Mexico, almost all goods and services are subject to VAT at a rate of 15%. This also applies to paying for cellular communications or renting premises for living. Therefore, one should not be surprised at the difference between the real cost of goods and services and those declared on price tags. The Mexican peso against the ruble is trading at a rate of 1 to 0.35.