What is the Currency of Mexico?

Ah, Mexico! Land of sun-soaked beaches, mouth-watering cuisine, and vibrant fiestas that will make you forget all about that dreary British drizzle. But before you pack your sombrero and sunscreen, there's one little detail you’ll need to sort out—money. So, what is the currency of Mexico? Fear not, for we've got you covered in this all-inclusive guide, ensuring you're not left scratching your head (or wallet) when you land in this beautiful country.

In this guide, we’ll dive deep into everything you need to know about the currency in Mexico. From understanding the value of the Mexican peso compared to the British pound to figuring out whether cash or card is king, we've got the lowdown. And because we know you love a good story, we’ll sprinkle in some historical tidbits about the Mexican peso that you can casually drop into conversation over a margarita or two.

Currency in Mexico

First things first, let’s get to know the star of the show: the Mexican peso. This little chap is what you'll be dealing with as you navigate through Mexico's bustling markets, chic boutiques, and cosy cantinas. The currency code for the Mexican peso is MXN, and you'll recognize it by the familiar dollar sign ($), which, for the uninitiated, can be a tad confusing at first glance.

One Mexican peso is subdivided into 100 centavos, the local equivalent of pennies.

Mexican Peso Denominations

The Mexican peso comes in a variety of denominations that are easy to get your head around, especially if you’ve ever handled pounds and pence. Here’s a quick rundown of what to expect when it comes to cash in Mexico:

Banknotes

• $20: You’ll likely see plenty of these colourful bills, great for small purchases like your morning coffee.
• $50: Handy for a quick bite or topping up your bus fare.
• $100: The workhorse of the peso world, perfect for meals out and market shopping.
• $200: Ideal for bigger purchases—think souvenirs or a round of cocktails.
• $500: Used for more substantial spending, perhaps that fancy dinner by the beach.
• $1,000: Rarely seen, but useful for larger expenses. Just don’t expect to break this note easily!

Coins

• 5¢, 10¢, 20¢, 50¢: These are your everyday coins, perfect for tipping or giving to street performers.
• $1: Often used for small change.
• $2, $5, $10: Commonly used coins, with the $10 coin being particularly handy.
• $20: Rarely used in coin form, but it’s a hefty bit of metal if you get your hands on one!

Can I Spend Other Currencies in Mexico?

So, you’re wondering if you can get by with just your trusty British pounds or maybe even some leftover US dollars? Well, here’s the scoop. While several Latin American countries use a currency called the peso, in Mexico, you can only spend the Mexican peso. Yes, we know they all sound similar, but this is one time you don’t want to mix things up.

In touristy areas, you might find some places that accept US dollars—particularly in border towns or popular resorts like Cancun or Playa del Carmen. But trust us, it’s always better to have local currency on hand. Why? Because not only will you get better value, but you’ll also avoid the awkward “but I only have dollars” dance with vendors who may not be keen on foreign currency.

History of the Mexican Peso

Now, let's take a quick jaunt down memory lane and explore the history of the Mexican peso. This might just be the oldest currency in North America, with roots that dig deep into the continent’s colonial past.

Pesos in the 20th Century

The Mexican peso we know today has undergone several changes throughout its storied history. Back in the day, the peso was one of the most stable currencies in Latin America, widely trusted and even used as a benchmark for other regional currencies. However, the peso has had its fair share of ups and downs, particularly during the financial crises of the 20th century.

In the late 1970s and early 1980s, Mexico experienced high inflation, which led to a significant devaluation of the peso. The government then introduced a new strategy to stabilise the currency, which led to the introduction of a new version of the peso in the 1990s.

Nuevo Pesos

Ah, the ‘Nuevo Peso’—the new kid on the block in the early 1990s. To combat rampant inflation, Mexico lopped off three zeros from its currency, and thus, the Nuevo Peso (MXN) was born. Imagine turning 1,000 pesos into 1 peso overnight. Voilà! Now, the Nuevo Peso is simply called the peso again, but it was an important move to regain economic stability. It’s a bit like rebranding—sometimes you just need a fresh start.

Factors Impacting the Mexican Peso

The value of the Mexican peso doesn’t exist in a vacuum; it’s influenced by a host of factors, both local and international. Mexico’s proximity to the United States, for one, plays a significant role. The economic relationship between these two nations is close-knit, so when the US dollar sneezes, the peso often catches a cold.

Moreover, fluctuations in global oil prices can impact the peso. Mexico is a major oil exporter, so when energy prices swing, the peso often follows suit. Political developments, both within Mexico and internationally, also play their part in the peso’s value. It’s a bit like watching a soap opera—never a dull moment, and always some drama on the horizon.

Where to Get Mexican Peso

Now, onto the practical bit—where to get your hands on those shiny Mexican pesos before your trip. As any seasoned traveller knows, it’s best to arrive in a new country with some local currency already in your pocket. Fortunately, Travelex has got you sorted.

You can easily buy your Mexican pesos online through Travelex for home delivery or store Click & Collect. It’s as simple as ordering your Friday night takeaway, but with less guilt and more exchange rate satisfaction. Speaking of which, Travelex offers competitive exchange rates with no commission when you buy online, so you can feel smug about getting a good deal.

Travelex Money Card

It’s a good idea to have some cash and a card, and the Travelex Money Card is perfect. This handy little number allows you to load multiple currencies onto one card, including Mexican pesos, of course. It’s contactless, secure, and perfect for tapping your way through Mexico’s colourful markets without worrying about carrying too much cash.

Plus, with the Travelex Money Card, you can lock in your exchange rate before you travel, so you won’t be caught out by any unexpected market movements while you’re on the beach. Think of it as your financial sunscreen—protecting you from the burn of fluctuating rates.

Ready to Buy Some Pesos?

So, you’ve made it through our guide and you’re practically a Mexican peso expert. Whether you’re planning to sip margaritas by the sea, explore ancient ruins, or dance the night away in Mexico City, you’ll want to have your pesos ready to go.

Why not get ahead of the game and order your Mexican pesos today? With Travelex, you can rest easy knowing you’re getting competitive exchange rates and service from the currency experts you can trust. And while you’re at it, why not grab a Travelex Money Card too? It’s the perfect travel companion for your Mexican adventure.

Remember, a little preparation goes a long way. So, get your pesos sorted, pack that passport, and prepare for an unforgettable journey. Happy travels, amigos!