Mexico City Currency: History and Evolution

Mexico City's currency has a rich history that spans centuries. The first currency used in Mexico City was the peso, introduced in 1821 after Mexico gained independence from Spain.

The peso was initially pegged to the Spanish dollar, but it quickly became a standalone currency. In 1993, Mexico introduced the new peso, replacing the old one at a rate of 1,000 old pesos to 1 new peso.

This changeover had a significant impact on everyday transactions, with many businesses and individuals struggling to adapt.

The Mexican peso has a rich history that spans centuries. It originated from a common coin imported from Europe during the colonial period, known as the "Spanish dollar", which was made of silver and worth eight Spanish reales.

This coin was later called the "peso" in Mexico, and it remained a widely used currency even after Mexico gained independence from Spain in 1821. The Mexican government continued to use the Spanish monetary system for decades, printing banknotes in 1823 and issuing the first one-peso coin in 1866.

The peso underwent significant changes throughout the 20th century, with the gold content being reduced by nearly 50% in 1905. This was followed by a reduction in silver content, and by 1977, the last silver coins were issued.

The Mexican peso has a rich history dating back to the colonial era when the Spanish dollar, made of silver and worth eight Spanish real, was imported from Europe. This coin was also known as "a piece of eight" and eventually came to be called the "peso" in Mexico.

The Mexican government continued to use the Spanish monetary system for decades after independence from Spain in 1821. In 1823, the first banknotes were printed in the country.

The first one-peso coin was issued in 1866 under Emperor Maximilian I, and it marked a significant departure from the tradition of the reales, as each peso was now made up of 100 centavos. This change paved the way for the modern Mexican currency.

The peso's gold and silver content was gradually replaced with less expensive metals, starting with a reduction in gold content by nearly 50% in 1905. This was followed by a decline in silver content from 1918 to 1977.

The Mexican peso was one of the more stable currencies in Latin America throughout most of the 20th century. However, the late 20th century was a challenging time for the currency, with the 1970s oil crisis causing significant economic hardship.

The government introduced the nuevo or new peso in 1993 to combat further devaluation, with a single nuevo peso equalling 1,000 old pesos.

The Mexican peso was one of the most stable currencies in Latin America through most of the 20th century. It didn't experience periods of hyperinflation, as was happening to many of the neighboring countries.

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 stabilize the currency.

A new version of the peso was introduced in the 1990s, worth 1000 old pesos. The modifier "nuevo" was dropped in 1996, and the Mexican currency again became just the peso.

Between 1960 and 1971, new coinage was introduced, consisting of brass 1 and 5 centavos, cupro-nickel 10, 25, and 50 centavos, 1, 5, and 10 pesos, and silver 25 pesos. Silver 100 pesos were issued for circulation in 1977.

Coins of 5,000 pesos were minted due to the peso's devaluation, and base metal 100, 200, 500, 1,000, and 5,000 peso coins were introduced between 1984 and 1988.

The U.S. dollar has a fascinating history that's closely tied to Mexico's currency. The dollar was created in 1792, establishing it as the principal unit of currency in the United States.

The U.S. dollar was modeled after the Mexican peso, which had an international reputation and stability due to Spain's large supply of silver. This is why the original U.S. dollar was also made from silver.

The peso's influence on the U.S. dollar is evident in the shared "$" symbol, which was first used by the Mexican peso for their coins. The "PS" abbreviation, used to denote Spanish pesos, is thought to be the origin of the "$" sign.

The U.S. dollar remained alongside the Mexican peso as legal tender in the United States until 1857.

The Mexican peso is the local currency in Mexico, and its code is MXN. You'll recognize it by the dollar sign ($).

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

You can only spend the Mexican peso in Mexico, so it's best to have local currency on hand.

In touristy areas, some places might accept US dollars, but it's always better to get better value with local currency.

The Mexican peso symbol is $, just like the US dollar, due to its shared history.

The exchange rate of the dollar to peso has mostly hovered around 1:20 since 2018, with a brief exception in 2020 when it reached almost 1:25 in April.

The U.S. dollar experienced significant devaluations in Mexico, particularly in 1976 and 1982. The dollar leapt from 12.50 to 19.40 pesos in 1976.

This devaluation had severe consequences, including capital flight and several years of inflation. The dollar again rose from 23 to 150 pesos in 1982, causing financial strain on companies with loans in USD and contracts in MXP.

High unemployment and pressure on remaining employees were direct results of the devaluation. Government attempts to fix the economy through inward-looking industrialization only led to economic imbalances.

A recession occurred in 1983, but the economy eventually stabilized in the early 1990s at above 3,000 MXP/USD. This stabilization was achieved through the adoption of the "Stability and Economic Growth Pact" under President Carlos Salinas.

Mexico's currency has undergone significant changes over the years, and one notable example is the introduction of the nuevo peso in 1993. This new currency replaced the old peso, which was divided into 1,000 units of the obsolete MXP pesos.

The nuevo peso, written as "N$" followed by the numerical amount, was a major shift in the country's financial system. It's interesting to note how this change affected the way people thought about money.

One new peso was equal to 1,000 of the old pesos, making it a significant adjustment for everyday transactions.

The Mexican peso is the local currency in Mexico, with the code MXN and a familiar dollar sign ($). You'll need to get used to it as you navigate markets, boutiques, and cantinas.

One peso is subdivided into 100 centavos, the local equivalent of pennies. This is useful to know when making purchases or exchanging currency.

You can't use old banknotes that are out of circulation to pay in stores in Mexico, even if they can be exchanged at banks for modern banknotes. Stores won't accept them, so it's best to use fresh, valid pesos.

If you travel to Mexico, try to avoid using $1000 bills as they may not be accepted by smaller stores, and you may not get change. Using $100 bills can also lead to issues with change.

You can only spend the Mexican peso in Mexico, so it's best to have local currency on hand. This will give you better value and avoid awkward situations with vendors who may not accept foreign currency.

In touristy areas, some places may accept US dollars, particularly in border towns or popular resorts like Cancun or Playa del Carmen. However, it's still a good idea to have local currency.

One Mexican peso is subdivided into 100 centavos, the local equivalent of pennies. This can be a bit confusing, especially with the dollar sign ($) on the currency.

Stores in Mexico won't accept old banknotes that are out of circulation, even if they can be exchanged at banks for modern banknotes. It's best to use fresh, usable currency.

$1000 bills can be a problem in Mexico, as smaller stores may not be able to give you change. It's best to avoid using them altogether.

To exchange the Mexican peso, you can buy or sell it online at the best rates and have high-grade banknotes delivered securely to your doorstep. A US First Exchange simplifies the process for your convenience.

You can pay by credit card, bank draft, or money wire, and your packages will be fully covered by insurance, regardless of the amount you order. It's a convenient way to exchange pesos without having to physically go to a bank or currency exchange.

The exchange rate is an important consideration when converting MXN to USD or vice versa. For example, if the dollar exchange rate with MXN is 1 USD = 16.84 MXN, and you want to exchange 100 USD for MXN, the calculation would be 100 USD x 16.84 = 1684 MXN.

Exchange rates fluctuate from hour to hour and day by day as the values of currencies change. It's essential to find out the current exchange rate and compare rates between providers when you want to send money abroad.

Here are some key exchange rates to note:

Keep in mind that someone receiving a money transfer from you typically won't get the full amount you exchanged, as money transfer services and banks usually charge currency conversion fees.

The Mexican peso has a variety of denominations, including centavos coins and peso coins. You can find centavos coins in denominations of 5, 10, 20, and 50 cents.

Peso coins, on the other hand, come in denominations of 1, 2, 5, 10, 20, 50, and 100 pesos. Some of these coins, like the 50- and 100-peso coins, contain silver, but they're rarely used due to their high value.

Here's a breakdown of the current denominations for both coins and banknotes:

The 1,000-peso banknote is rare, but it does exist.

The Mexican peso has a variety of denominations that can be a bit confusing at first, but don't worry, I've got you covered.

The most commonly used coins are the centavos, which come in denominations of 5, 10, 20, and 50. You'll rarely see the 5 centavo coin in circulation anymore, as it was withdrawn in 2002.

The peso coins are a bit more widely used, with denominations of 1, 2, 5, 10, 20, 50, and 100. The 50 and 100 peso coins from the 1996 series contain a silver center, but they're rarely used due to their high value.

The current banknotes come in denominations of 20, 50, 100, 200, 500, and 1000. The 1000-peso banknote is relatively rare, but it does exist – just be aware that some small stores may not accept it due to change issues.

Here's a summary of the coin and banknote denominations:

Commemorative banknotes are a unique way for countries to honor important events and figures. The Bank of Mexico has issued several commemorative banknotes over the years.

In 2009, the Bank of Mexico unveiled a set of commemorative banknotes to mark the centennial of the Beginning of the Mexican Revolution and the bicentennial of the start of the Mexican War for Independence. The 100-peso denomination note commemorates the revolution, while the 200-peso denomination note commemorates the war for independence.

The 100-peso note features a steam locomotive on the obverse and a painting by David Alfaro Siqueiros on the reverse. It measures 134 × 66 mm and has a main color of red.

A printing error on the 100-peso note incorrectly quoted a famous phrase by Francisco I. Madero. The error was small and almost unnoticeable, but it was corrected by President Felipe Calderón in a public announcement. The notes continued to be in circulation and retained their value.

The Bank of Mexico also issued a new 200-peso banknote in 2019, which contained a special overprint referencing the 25th Anniversary of the Bank of Mexico's Autonomy from the Federal Government.

Here is a list of the commemorative banknotes issued by the Bank of Mexico:

In 2017, the Bank of Mexico issued a 100-peso banknote to commemorate the 100th anniversary of the enactment of the Constitution of Mexico.

The first banknotes issued by the Bank of Mexico were printed in 1925 and continued until 1934. This was a significant milestone in the country's history of using paper money.

The Bank of Mexico chose the American Bank Note Company to print these banknotes, a company that is still in operation today.

Old banknotes can be quite valuable if they're in good condition and are collector's items. Historical banknotes and silver peso coins can be worth more than their regular monetary value.

You can exchange old notes for modern banknotes at their present-day value. The Bank of Mexico has a list of the present-day values of old banknotes that you can find online.

If your old notes have no value as collectibles, you can still exchange them for modern banknotes.