DEFINITION of 'MXN (Mexican Peso)'

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

BREAKING DOWN 'MXN (Mexican Peso)'

The peso was originally issued by Spain and therefore named the Spanish dollar, which 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 century, but their content of gold was reduced substantially overtime. 

Following a period of hyperinflation and currency devaluation in the 1980s that occurred after Mexico defaulted on its external debt as a result of the 1970s oil crisis, the government of Mexico created a new peso, or "nuevo peso," to replace the original peso in 1993. The new peso replaced the old peso at a rate of 1:1000.

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 Great Recession. A slew of accommodative central bank policy saw volatility fall and the value of the peso slowly climb. In the two years after the crisis, the value of the peso rose by as much as 30 percent against the U.S. dollar. Conversely, in the months following the election of President Donald Trump, volatility spiked, and as fears the NAFTA trade agreement might be ratified the peso plummeted, losing 20 percent of its value in three months. 

The Mexican peso is the eighth most traded currency in the world and the most in Latin America. 

  1. ARP (Argentinian peso)

    The currency abbreviation, or currency symbol, for the Argentinian ...
  2. CLP (Chilean Peso)

    The currency abbreviation for the Chilean peso (CLP), the currency ...
  3. PHP

    In currencies, this is the abbreviation for the Philippine Peso.
  4. COP

    The currency abbreviation for the Colombian peso. The COP has ...
  5. CUP

    The ISO 4217 currency code for the Cuban peso, one of two official ...
  6. Trade Hill Exchange

    A Bitcoin exchange launched in June of 2011. Trade Hill Exchange ...
Related Articles
  1. Insights

    How Does a Currency Peg Work?

    When a government initiates a currency peg, it pegs its currency’s value to that of another country.
  2. Investing

    This Might Be the Best Time to Buy Colombian Pesos

    Signs are growing that energy markets are bottoming out, allowing the Colombian Peso to recover its value in a profitable trend against the U.S. Dollar.
  3. Trading

    3 Reasons The Mexican Peso Is So Liquid (MXN, USD)

    Mexico's vast petroleum reserves and close proximity to the United States add considerable liquidity to the Mexican peso.
  4. Trading

    What Are the Best Hours to Trade the Mexican Peso? (MXN, USD)

    The best times to trade the Mexican peso are centered around economic releases, typically in the morning hours.
  5. Investing

    Hamburger Economics: The Big Mac Index

    In theory, PPP stands up much better than it does in reality. Find out how to evaluate currencies according to the price of a Big Mac.
  6. Insights

    Can Emerging Markets Replicate Q1 Gains in Q2?

    While the focus of the world’s media has naturally fallen on the ins and outs of policy from the Trump White House, outside of the U.S. and the G10, emerging markets kicked off the year in a ...
  7. Insights

    Mexico's Economic Policymakers Respond to Trump Win

    Mexico has reduced its sales of long-term bonds and boosted sales of short-term bonds, but policymakers say the country's economic position is "strong."
  8. Tech

    Stocks Recover from Overnight Selloff on Trump Victory

    When news broke that Trump would be the next president, Dow futures fell as much as 700 points and gold rallied 3%. Things have calmed down a bit since.
  9. Trading

    Trump and the Mexican Peso Opportunity

    The 2016 presidential race has had very little apparent effect on the U.S. dollar against a broad basket of world currencies. The Mexican peso, however, is the exception to this rule.
  10. Investing

    Argentina’s YPF Issues Local Currency Debt (YPF)

    Argentina’s YPF takes advantage of improving market conditions to issue the equivalent of $750 million of local currency debt.
  1. What are the most common market indicators to follow the Mexican stock market and ...

    Learn the primary stock market indicators for the Mexican stock market and the leading economic indicators analysts use to ... Read Answer >>
  2. What are the financial benefits of retiring in the Philippines?

    Read about the many financial benefits of retiring in the Philippines as an American expatriate, including low health costs ... Read Answer >>
  3. Is Mexico an emerging market economy?

    Learn the difference between a developed economy and an emerging market economy, and understand why Mexico is an emerging ... Read Answer >>
  4. What is foreign exchange?

    Foreign exchange, or Forex, is the conversion of one country's currency into that of another. In a free economy, a country's ... Read Answer >>
Hot Definitions
  1. Diversification

    Diversification is the strategy of investing in a variety of securities in order to lower the risk involved with putting ...
  2. Liquidity

    Liquidity is the degree to which an asset or security can be quickly bought or sold in the market without affecting the asset's ...
  3. Federal Funds Rate

    The federal funds rate is the interest rate at which a depository institution lends funds maintained at the Federal Reserve ...
  4. Call Option

    An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument ...
  5. Standard Deviation

    A measure of the dispersion of a set of data from its mean, calculated as the square root of the variance. The more spread ...
  6. Entrepreneur

    An entrepreneur is an individual who founds and runs a small business and assumes all the risk and reward of the venture.
Trading Center