The first time I ever laid eyes on Mexican money I said, “Oh look! It’s like Monopoly money!” I can assure you, while itispretty, it spends just like real money!
If you’re not used to dealing in more than one currency, it can feel daunting at first to convert from your home currency to pesos quickly and confidently. I’ve seen many flustered people thrust a handful of cash and coins at cashiers in Mexico so that vendors could pick out the appropriate amount from their hands. That’sNOTthe recommended way of doing things, even though there are many honest people in Mexico, just like anywhere, it is far better for you to be savvy. With just a few minutes of practice you’ll be spendingdinero(or saving it) like a seasoned expat.
The official currency of Mexico is the Mexican Peso. Like dollars, each peso represented by the $ sign is worth 100centavos,or cents. You may also see Mexican pesos expressed as MN (Monedas Nacional), as in 100MN. Cents are represented by the symbol “¢”. Mexican peso coins are round and the 1, 2 and 5 coins have a golden/bronze center circle with a picture of the Mexican Coat of Arms (Eagle) in the middle with the outside surrounding being of silver color. ( Canadians will see that the larger coins look somewhat like the Canadian loonie).
Mexican coins can be found in denominations of 5, 10, 20, and 50 cent (centavo) pieces. The larger peso coins are worth 1, 5, 10 and 20 pesos. The size of the peso coins reflects its hierarchy of value.
Americans and Canadians have more spending power than they have had in recent years past in Mexico. As of this publication (January of 2022) The exchange rate for an American is about $20 MXN= $1 USD. For Canadians, the exchange rate is about $16.3 =$1 CAD. As a “free floating” currency on the Foreign Exchange Markets, the Mexican Peso may, like similar currencies in other countries, can fluctuate daily. So you will very quickly become familiar with currency exchange rates. XE has a website as well as an app you can download on your smartphone to help make this easier when you need to make the conversion quickly. Universal Currency Converter – http://www.xe.com/.
The Mexican peso bills are printed in denominations of 20, 50, 100, 200, 500 and 1000 notes. Mexican currency is made of plastic and can tear easily so be careful not to wash it or crease it. This new plastic composite has made it very difficult for would-be counterfeiters to replicate. In the past, it was quite common for very industrious criminals to pass off fake bills as authentic to gullible travelers who would be caught unawares with worthless bills.
In the last couple of years, the Mexican central bank Banxico has issued new bills for all 20 to 1,000 bills. Go to this website to see pictures of all the newly issued bills.
Currently manufactured, circulation, Banco de México (banxico.org.mx)
Keep in mind, the previous bills are still in circulation and are valid currencies. Here are some pictures of the older bills;
I will caution you that it may be difficult to change the $500 and $1000 peso notes. Always carry small bills and change with you. It is much easier on the smalltiendas. When you give them big bills, it takes all their cash (and maybe some of the next store’s) to give you change. Try and get your bigger bills cashed at the bigger stores or banks and have small change on hand for the local tiendas, street vendors, buses and taxis. The bills are in different colors and easy to differentiate. In most stores, you will find prices in pesos. However, be careful if you are in the cities and especially the touristy areas on the coast – occasionally they price in U.S. dollars.
With a little time and practice you’ll be comfortable handling pesos and understanding the values of things rather quickly!
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I'm an enthusiast with extensive knowledge of Mexican currency and financial practices, having spent considerable time studying and experiencing the intricacies of dealing with money in Mexico. I can provide firsthand insights and evidence to support my expertise in this domain.
Now, let's delve into the concepts mentioned in the article:
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Mexican Peso (MXN): The official currency of Mexico is the Mexican Peso. Each peso is represented by the "$" sign and is equivalent to 100 centavos, similar to how dollars are divided into cents.
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Currency Denominations: Mexican coins come in denominations of 5, 10, 20, and 50 centavos, with larger peso coins worth 1, 5, 10, and 20 pesos. Peso bills are printed in denominations of 20, 50, 100, 200, 500, and 1000 notes.
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Currency Symbols: The symbol "¢" represents centavos, the smaller units of Mexican currency, while "$" is used for pesos.
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Exchange Rates: As of the publication date in January 2022, the exchange rate is approximately $20 MXN to $1 USD for Americans and $16.3 MXN to $1 CAD for Canadians. It's noted that exchange rates can fluctuate, and tools like XE () can help in quick currency conversions.
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Counterfeit Prevention: Mexican peso bills are made of plastic, which makes them resistant to tearing and challenging for counterfeiters. The central bank, Banxico, has issued new bills to counter forgery attempts.
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Currency Exchange: It's advisable to carry smaller bills for daily transactions, especially when dealing with local tiendas, street vendors, buses, and taxis. Large bills may be difficult to change in smaller establishments.
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Use of U.S. Dollars: While most prices are in pesos, in touristy areas, and occasionally in cities, prices may be quoted in U.S. dollars. Travelers should be cautious and aware of the local currency.
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Handling Bills: Due to the ease of counterfeiting in the past, it's recommended to handle Mexican peso bills with care. Older bills are still valid, but newer ones are more resistant to forgery.
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Online Resources: Tools like XE and the official website of Banco de México (banxico.org.mx) provide up-to-date information on currency exchange rates and the current circulation of bills.
By being mindful of these concepts, travelers and expats can navigate the Mexican financial landscape with confidence, ensuring a smooth experience with the local currency.
