What Is the MXN (Mexican Peso)?

MXN is the currency abbreviation for the Mexican peso, which is the official currency of Mexico. The Mexican peso is made up of 100 centavos and is often presented with the symbol $ or Mex$. The name "peso" means "weights" and refers to gold or silver weights.

History of the MXN (Mexican Peso)

The peso was initially based on Spain's official currency, known as real, which was the Spanish dollar minted in silver. The Mexican name originated from the most common denomination of the currency, which was the silver eight real coin, and it remained in circulation until the mid-19th century. In 1863 the first coins were produced that were denominated in centavos, and worth one-hundredth of the peso. These coins remained in circulation until the mid-20th cen𝓰tury, but their content of gold was reduced substantially over tim❀e.

Following a period of hyperinflation and currency 澳洲幸运5开奖号码历史查询:devaluation in the 1980s, which occurred after Mexico defaulted on its 澳洲幸运5开奖号码历史查询:external debt as a result of the 1970s oil crisis, the government of Mexico in 1993 created a new peso, or nuevo peso, to replace the original peso. The new peso replaced the old p🙈eso at a 🎀rate of 1:1,000.

Value of the the MXN (Mexican Peso)

Like many emerging market currencies, the value of the peso fluctuates with geopolitical and global sentiment. Generally, when global volatility is low, the peso appreciates, as seen in the years after the 澳洲幸运5开奖号码历史查询:Great Recession. A slew of accommodative central bank po𒊎licy initiatives saw volatility fall and t⭕he value of the peso slowly climb.

In the months following the presidential election of Donald Trump in 2016, volatility spiked, and, as uncertainty surrounding the 澳洲幸运5开奖号码历史查询:North ♛American Free Trade Agreem꧃ent (NAFTA) heightened, the peso plummeted, losing about 20% of its value in three months. 

The Mexican peso is the 澳洲幸运5开奖号码历史查询:eighth most traded currency in the world and 澳洲幸运5开奖号码历史查询:the most traded in Latin America. 

The Bottom Line

The Mexican peso (MXN) replaced the old Spanish colonial real in 1863, becoming the official currency of Mexico. Although the Mexican peso's value tends to be volatile, it enjoys high liquidity and is one of the most traded currencies in the world.