Mexico is the link between North and Central America. Mexico is a developing industrial nation. It has free trade agreements with Canada and the United States as well as other counties. Tourism forms a major component of its economy. The currency of the country is the peso. This highly traded money is listed as MXN on the market. It consists of 100 centavos.
History
The first coins came to Mexico under the rule of the Spaniards. This New Spain replaced the native currency of cocoa beans and copper ingots. The Spanish opened the first mint in the New World at Mexico City. Using local silver and gold, they produced silver reales and gold escudos. These resembled contemporary Spanish coins but featured the pillar of Hercules symbolic of Spain’s colonial possessions.
The coins between the 1650s and the
18th century were crudely struck on irregular flats of metal. The name
for them became “cobs.” New designs featuring the pillars of Hercules
with a depiction of both the Old and New Worlds began to appear. By
1772, the currency underwent another change coinciding with currency
debasement. The most important coins of this period continued to be the
Pieces of Eight, the famous Spanish colonial coin.
Under the First
Mexican Empire, several branch mints put out coins. There were actually
two types. Some were the result of the Napoleonic domination of Spain.
Royalists in Mexico minted coins bearing the portrait of the king.
Insurgents and Royalists both counterstamped coins and currency.
After
a brief period as the First Mexican Empire under Emperor Augustin
Iturbide, Mexico became a Republic. The denominations of 1823, retained
colonial denominations but featured relevant designs. This included
depicting the legendary founding of Mexico City. The Mexico mint was
functioning strongly between 1829 and 1837. State coppers appeared and
Hacienda tokens from private sources as well. The first banknotes
appeared in 1823 in pesos.
By 1866, Emperor Maximilian had his own
coinage, but most money came from private banks. This remained the
system until the 1920s. Meanwhile, a brief period saw the return to
gold escudos and silver reales. In 1869, decimal coinage added to the
mix with Mexican eagles and the cup of liberty comprising design
elements. This early decimal system had problems with the Chinese
traders who refused to deal with decimal coinage. The Mexican monetary
system tried again with centavos and pesos in 1905.
After the silver crisis, a major reform in currency saw mints closing throughout Mexico except for the main one in Mexico City. A further problem occurred during the unrest under Pancho Villa and Emiliano Zapato. Both produced their own currency. There were also many changes during the period from 1910 to 1967. Banknotes and coins continued to adapt to economic fluctuations. This has lasted to the present. There have been Nuevo Pesos in 1993 and brand new designs in 1994.Security measures have made the banknotes less open to counterfeiting. Today, you can purchase 5, 10, 20, and 50 cents and 1, 2, 5, 10, 20, 50 and 100-peso coins. There are also 20, 50, 100, 200, 500 and 1,000 peso banknotes.
Obtaining Mexican Pesos
You can exchange your own currency at the casas de cambio or moneychangers. Banks are also another source. There services may be slower than those of the moneychangers may. Their hours are also fewer and more restrictive. You may also find more moneychangers than banks throughout the country making their services more convenient. As rates fro both services vary, check with your bank and in the local newspapers before you choose to use one or the other. Besides banks and money exchangers, you can use hotels. Check with their rates. They tend to be the highest. You may be better if you choose ATMs or AMBs. You can find them located throughout Mexico.
Protecting Your Currency
Crime
is an ongoing problem in Mexico. Armed robbery, pickpocketing and purse
snatching are regular occurrences. To avoid theft, do not dress up.
Avoid displaying expensive jewelry or flashing your cash. Watch your
wallet at buses. Carry only small amounts of money and be very careful
exiting from ATMs.
Another problem is kidnapping for cash. The
perpetrators force the victims to withdraw cash from ATMs or ABMs.
While tourists are not the specific target, they become entrapped if
they look wealthy or a member of the middle class.
Using Your Mexican Pesos
The Peso is acceptable currency across Mexico. In some remote spots and at open-air markets, it may be the preferred form of currency. Use it to pay for taxis or to buy food. It is also great for buying souvenirs and gifts. Mexico has a wide assortment of handicraft and traditional items for you to take back home. These include leather goods.
Try for fine jewelry from Taxco or black clay dishes from Oaxaca. There are woolen sarapes and brightly colored rebozos (scarves) in wool or silk. You can also buy charro hats, hammocks, rugs or baskets. Try looking for these at the Ki Huic Open Air Market outside the closed confines of Cancun or at the Artisan’s Market in Acapulco or the Mercado Libertad in Guadalajara.
Travel Tips and Warnings
- Be aware there is a tourism tax in Mexico.
- If you break the law in Mexico, the penalties that follow may be quite severe. This is particularly true for drug offences. The sentence may include lengthy jail time.
- If you are driving, check to see whether there are any restrictions due to attempts to reduce air pollution.
- You can play in the waters and laze on the beaches of Acapulco, Cancun, Puerto Vallarta and Cabo san Lucas, to name a few.
- You can go to visit the archeological sites of Teotihuacan with its wondrous Temples of the moon and sun.
- Take an ecotour at the Huitepec Ecological Reserve.
- Visit the Teotihuacan archeological zone.
- You must not forget the capital, Mexico City with its combination of old and modern sights.
- For a change, head to Oxaca with its narrow streets and local handicrafts.
Overview
Mexico
is a country linking the United States to Central America. A supporter
of Free Trade with the United States and Canada, it is both highly
industrialized in its urban centers and a repository of ancient North
American history. There are pyramids and modern resorts, paved roads
and untamed jungle. It is no wonder it is a top tourist stop.
For travel information, see www.visitmexico.com.
Currency Summary
Current currency: pesos
100 centavos equals 1 peso
Coins: 5, 10, 20, and 50 centavos; 1, 2, 5, 10, 20, 50 and 100-pesos
Banknotes: 20, 50, 100, 200, 500 and 1,000 pesos