Mexican peso

From Wikipedia, the free encyclopedia

Mexican peso peso mexicano (Spanish)
$1000 $10
ISO 4217 Code	MXN
User(s)	Mexico
Inflation	3.98%
Source	Banco de Mexico, 2007
Subunit
1/100	centavo
Symbol	$ or Mex$
centavo	¢
Nickname	varos, lucas, bolas, chuchulucos, pechereques.
Coins
Freq. used	10¢, 20¢, 50¢, $1, $2, $5, $10
Rarely used	5¢, $20, $50, $100
Banknotes	$20, $50, $100, $200, $500, $1000
Central bank	Bank of Mexico
Website	www.banxico.org.mx
Printer	Bank of Mexico
Website	www.banxico.org.mx

The peso is the currency of Mexico. The symbol used for the peso is "$", which is sometimes annotated Mex$ to distinguish from U.S. dollars. The current ISO 4217 code for the peso is MXN; prior to the 1993 revaluation (see below), the code "MXP" was used. The peso is subdivided into 100 centavos, represented by "¢". The name peso means weight in Spanish.

The peso circulated far beyond Mexico's borders as a trade coin, enjoying semi-official or official status in North America, China, South East Asia and the Pacific Islands.

Contents 1 History 1.1 First peso 1.2 Second peso 2 Use outside Mexico 3 Coins 3.1 Republic 3.2 United States 3.3 Nuevo peso 4 Banknotes 4.1 First peso 4.2 Second peso 5 Raised patterns for sight impaired 6 International use 7 See also 8 Reference 9 External links

[edit] History

[edit] First peso

The peso was initially the name of the eight-real coins issued in Mexico by Spain. These were the so-called Spanish dollars or pieces of eight. After Mexico gained its independence in 1821, the new government continued the Spanish monetary of system of 16 silver reales = 1 gold escudo, with the peso of 8 reales the largest silver coin. Paper money was also issued, denominated in pesos.

In 1863, the first issue was made of coins denominated in centavos, worth one hundredth of the peso. This was followed in 1866 by coins denominated "one peso". Coins denominated in reales continued to be issued until 1897. In 1905, the gold content of the peso was reduced by 49.3% but the silver content of the peso remained initially unchanged (subsidiary coins were debased). However, from 1918 onward, the weight and fineness of all the silver coins declined, until 1977, when the last silver 100 pesos coins were minted.

[edit] Second peso

Throughout most of the 20th century, the Mexican peso remained one of the most stable currencies in Latin America, since the economy did not experience periods of hyperinflation common to other countries in the region. However, after the Oil Crisis of the late 1970s, Mexico defaulted on its external debt in 1982 and experienced several years of inflation and devaluation until a government economic strategy called the "Stability and Economic Growth Pact" (Pacto de estabilidad y crecimiento económico, PECE) was adopted under President Carlos Salinas. On 1 January 1993, the Bank of Mexico introduced a new currency, the nuevo peso ("new peso", or MXN), written "N$" followed by the numerical amount. One new peso, or N$1.00, was equal to 1000 of the obsolete MXP pesos.

On January 1, 1996, the modifier nuevo was dropped from the name and new coins and banknotes – identical in every respect to the 1993 issue, with the exception of the now absent word "nuevo" – were put into circulation. The ISO 4217 code, however, remained unchanged as MXN.

Thanks to the stability of the Mexican economy and the growth in foreign investment, the Mexican peso is now among the 15 most traded currency units in the world, and is the most traded currency in Latin America. It has been fairly stable for the last few years; since the late 1990s the peso has traded at about 10 to 1 to the U.S. dollar, and is currently (December 2006) about $11 per dollar. This makes it relatively easy to convert from dollars to pesos and back; the 50¢ coin (tostón) is worth about the same as a U.S. nickel, and a 200 peso note about USD $18.

[edit] Use outside Mexico

After a decree adopted by the United States on 6 July 1785, the peso became the official currency of most of North America; it also became the foundation for the U.S. monetary system, at a rate of one peso to one dollar. The US dollar was not issued until 2 April 1792, but the peso continued to be officially recognized and used until 21 February 1857. In Canada, it remained a legal medium of payment until 1858. The Mexican peso also served as the model for the Straits dollar, the Hong Kong dollar, the Japanese yen and the Chinese yuan.

[edit] Coins

[edit] Republic

The first coins of the peso currency were 1 centavo pieces minted in 1863. Emperor Maximilian, the French puppet who ruled from 1864-1867, minted the first coins with the legend "peso" on them. His portrait was on the obverse, with the legend "Maximiliano Emperador;" the reverse shows the imperial arms and the legends "Imperio Mexicano" and "1 Peso" and the date. They were struck from 1866 to 1867.

The new Mexican republic continued to strike the 8 reales piece, but also began minting coins denominated in centavos and pesos. In addition to copper 1 centavo coins, silver (.903 fineness) coins of 5, 10, 25 and 50 centavos and 1 peso were introduced between 1867 and 1869. Gold 1, 2½, 5, 10 and 20 pesos coins were introduced in 1870. The obverses featured the Mexican 'eagle' and the legend "Republica Mexicana." The reverses of the larger coins showed a pair of balances, those of the smaller coins, the denomination. 1 peso coins were made from 1869 to 1873, when 8 reales coins resumed production. In 1882, cupro-nickel 1, 2 and 5 centavos coins were issued but they were only minted for two years. The 1 peso was reintroduced in 1898, with the Phrygian, or liberty cap design being carried over from the 8 reales.

[edit] United States

In 1905, the United States of Mexico was proclaimed and a monetary reform was carried out in which the gold content of the peso was reduced by 49.36% and the silver coins were (with the exception of the 1 peso) reduced to token issues. Bronze 1 and 2 centavos, nickel 5 centavos, silver 10, 20 and 50 centavos and gold 5 and 10 pesos were issued.

In 1910, a new peso coin was issued, the famous "Caballito", one of the most beautiful of Mexican coins. The obverse had the Mexican 'eagle' and the legends "Estados Unidos Mexicanos" and "Un Peso." The reverse showed a woman riding a horse, her hand lifted high in exhortation, and the date. These were minted in .903 silver from 1910 to 1914.

Between 1917 and 1919, the gold coinage was expanded to include 2, 2½ and 20 pesos coins. However, circulation issues of gold ceased in 1921. In 1918, the peso coin was debased, bringing it into line with new silver 10, 20 and 50 centavos coins. All were minted in .800 fineness to a standard of 14.5 g to the peso. The liberty cap design, already on the other silver coins, was applied to the peso. Another debasement in 1920 reduced the fineness to .720 with 12 g of silver to the peso. Bronze 10 and 20 centavos coins were introduced in 1919 and 1920 but the last silver coins of those denominations were minted in 1935 and 1943, respectively.

In 1947, a new issue of silver coins was struck, with the 50 centavos and 1 peso in .500 fineness and a new 5 pesos coin in .900 fineness. A portrait of José María Morelos appeared on the 1 peso and this was to remain a feature of the 1 peso coin until its demise. The silver content of this series was 5.4 g to the peso. This was reduced to 4 g in 1950, when .300 fineness 25 and 50 centavos and 1 peso coins were minted alongside .720 fineness 5 pesos. A new portrait of Morelos appeared on the 1 peso, with Cuauhtemoc on the 50 centavos and Miguel Hidalgo on the 5 pesos. No reference was made to the silver content except on the 5 pesos.

In 1955, bronze 50 centavos were introduced, along with smaller 5 pesos coins and a new 10 pesos coin. In 1957, new 1 peso coins were issued in .100 silver. This series contained 2.6 g of silver per peso. A special 1 peso was minted in 1957 to commemorate Benito Juárez and the constitution of 1857. These were the last silver pesos.

Between 1970 and 1974, a new coinage was introduced, consisting of brass 1 and 5 centavos, cupro-nickel 10, 20 and 50 centavos, 1, 5 and 10 pesos and silver 20 pesos (only issued 1972). In 1977, silver 100 pesos were issued for circulation. In 1980, smaller 5 pesos coins were introduced alongside 20 pesos and (from 1982) 50 pesos in cupro-nickel. Between 1983 and 1985, the sizes of the coins for 20 centavos and above were reduced. Base metal 100, 500 and 1000 pesos coins were introduced between 1984 and 1988.

[edit] Nuevo peso

In 1993, coins of the new currency (dated 1992) were issued in denominations of 5, 10, 20 and 50 centavos, 1, 2, 5, 10, 20 and 50 nuevos pesos. The 5 and 10 centavos were minted in stainless steel and the 20 and 50 centavos in aluminium bronze. The nuevo peso denominations were bimetallic, with the 1, 2 and 5 nuevos pesos having aluminium bronze centres and stainless steel rings, and the 10, 20 and 50 nuevos pesos having .925 silver centres and aluminium bronze rings. In 1996, the word nuevo(s) was removed from the coins. New 10 pesos were introduced with base metal replacing the silver centre.

In 2003 the Bank of Mexico began the gradual launch of a new series of bimetallic $100 coins. These number 32 – one for each of the nation's 31 states, plus the Federal District. While the obverse of these coins bears the traditional Coat of arms of Mexico, their reverses show the individual coats of arms of the component states. The first states to be celebrated in this fashion were Zacatecas, Yucatán, Veracruz, and Tlaxcala. In circulation they are extraordinarily rare, but their novelty value counterbalances the unease most users feel at having such a large amount of money in a single coin. Although the Bank has tried to encourage users to collect full sets of these coins, issuing special display folders for the purpose, the high cost involved has worked against them. Bullion versions of these coins are also available, with the outer ring made of gold, instead of an aluminium bronze.

The coins commonly encountered in circulation have face values of 10¢, 20¢, 50¢, $1, $2, $5, $10, and $20. The $50 coins are rarely seen and largely disliked by users. As of late 2006 and early 2007, the usage of 10¢ and 20¢ coins is gradually declining. Small commodities are priced in multiples 10¢. But stores may choose to round the total prices to 50¢. Supermarkets also have the trend to ask customers to donate those cents to charities so that they can round the amount to 50¢ or 1 peso.

1992 Series [1]
Image	Value	Technical parameters			Description			Date of first minting
		Diameter	Weight	Composition	Edge	Obverse	Reverse
	5¢	15.5 mm	1.58 g	Stainless steel 16% ~ 18% chromium 0.75% nickel, maximum 0.12% carbon, maximum 1% silicon, maximum 1% manganese, maximum 0.03% sulfur, maximum 0.04% phosphorus, maximum remaining of iron	Smooth	State title, coat of arms	Value, the Quincunces Ring from the Aztec sun stone	1992
	10¢	17 mm	2.08 g				Value, the Sacrifice Ring from the Aztec sun stone
	20¢	19.5 mm (shortest) Dodecagon	3.04 g	Aluminium bronze 92% copper 6% aluminium 2% nickel	Smooth	State title, coat of arms	Value, Ácatl (13th day of the Aztec calendar)	1992
	50¢	22 mm Scalloped shape	4.39 g				Value, the Acceptance Ring from the Aztec sun stone
	N$1 or $1	21 mm	3.95 g	Ring: Stainless steel (as 10¢) Center: Aluminium bronze (as 50¢)	Smooth	State title, coat of arms	Value, the Sunshine Ring from the Aztec sun stone	N$: 1992 $: 1996
	N$2 or $2	23 mm	5.19 g				Value, the (partial) Days Ring from the Aztec sun stone
	N$5 or $5	25.5 mm	7.07 g				Value, the Snakes Ring from the Aztec sun stone
	N$10	28 mm	11.183 g R: 5.579 g C: 5.604 g	Ring: Aluminium bronze (as 50¢) Center: 925‰ silver	Milled	State title, coat of arms	Value, Tonatiuh from the Aztec sun stone at the center	1992
	$10	28 mm	10.329 g R: 5.579 g C: 4.75 g	Ring: Aluminium bronze (as 50¢) Center: 65% copper                25% zinc                10% nickel	Milled	State title, coat of arms	Value, Tonatiuh from the Aztec sun stone at the center	1997
	N$20	31.5 mm	? g	Ring: Aluminium bronze (as 50¢) Center: Silver	?	State title, coat of arms	Miguel Hidalgo	1993
	$50	40 mm	? g	Ring: ? Center: 925‰ silver	?	State title, coat of arms	Value, the Hero Cadets of the Battle of Chapultepec
Commemorative Coins (selected)
Image	Value	Technical parameters			Description			Date of first minting
		Diameter	Weight	Composition	Edge	Obverse	Reverse
	$10	28 mm	? g	Ring: ? Center: Cupronickel	Inscription	State title, coat of arms	Value, Tonatiuh from the Aztec sun stone at the center, "AÑO 2000" or "AÑO 2001" instead of "DIEZ PESOS" as commemorative legend	2000
	$20	31.5 mm	? g	Ring: Aluminium bronze (as 50¢) Center: Cupronickel	?	State title, coat of arms	Aztec "New Fire" ceremony	2000
							Octavio Paz
	$100	39 mm	33.967 g	Ring: Aluminium bronze Center: 925‰ silver	Intermittent milling	State title, coat of arms	Coats of arms of the 31 States of Mexico and the Federal District (In reverse alphabetical order)	2003
		?	?	?	?	?	Culture of the states (e.g. architecture, wildlife, flora, art, science, dances) (In normal alphabetical order)	2005
These images are to scale at 2.5 pixels per millimeter, a standard for world coins. For table standards, see the coin specification table.

[edit] Banknotes

[edit] First peso

The first banknotes issued by the Mexican state were produced in 1823 by Emperor Iturbide in denominations of 1, 2 and 10 pesos. Similar issues were made by the republican government later the same year. 10 pesos notes were also issued by Emperor Maximillian in 1866 but, until the 1920s, banknote production lay entirely in the hands of private banks and local authorities.

In 1920, the Comisión Monetaria issued 50 centavos and 1 peso notes whilst the Bank of Mexico issued 2 pesos notes. From 1925, the Bank issued notes for 5, 10, 20, 50 and 100 pesos, with 500 and 1000 pesos following in 1931. From 1935, the Bank also issued 1 peso notes and, from 1943, 10,000 pesos.

Production of 1 peso notes ceased in 1970, followed by 5 pesos in 1972, 10 and 20 pesos in 1977, 50 pesos in 1981, 100 pesos in 1982, 500 pesos in 1984 and 1000 pesos in 1985. 5000 pesos notes were introduced in 1981, followed by 2000 pesos in 1983, 20,000 pesos in 1985, 50,000 pesos in 1986 and 100,000 pesos in 1988.

[edit] Second peso

In 1993, notes were introduced in the new currency for 10, 20, 50, and 100 nuevos pesos. These notes are designate series B by the Bank. (It is important to note that this series designation is not the 1 or 2 letter series label printed on the banknotes themselves.) All were printed with the date 31 July 1992. The designs were carried over from the corresponding notes of the old peso.

In October 1994, Series C was issued with brand new designs. The word "nuevos" remained. 200 and 500 nuevos pesos were added. All were printed with the date 10 December 1992.

The current series of banknotes, designated series D , was introduced in 1996. It is a modified version of series C with the word "nuevos" dropped, the bank title changed from "El Banco de México" to "Banco de México" and the clause "pagará a la vista al portador" removed. There are several printed dates for each denomination. In 2001 a new $20 note was introduced. The new $20 is printed on longer lasting polymer plastic rather than paper. In 2002, in an effort to combat counterfeiting, Series D notes of 50 pesos and above were further modified with the addition of an iridescent strip. On notes of 100 pesos and above, the denomination is printed in color changing ink in the top right corner. A new $1000 note was issued in November 2004. While series D includes the $10 note and still legal tender, they are no longer printed and have been replaced by a coin. $10 notes are no longer found in circulation.

In 2000, a commemorative series was issued which was like series D except for the additional text "75 aniversario 1925-2000" under the bank title. It refers to the 75th anniversary of the Bank.

Series D [2]
Image	Value	Dimensions	Colour	Obverse	Notes
	$10	129 × 66 mm	Aqua	Emiliano Zapata	Withdrawn from circulation in 1997
	$20		Blue	Benito Juárez	Polymer banknote since 2002
	$50		Violet	José María Morelos y Pavón	Polymer banknote since 2006
	$100	155 × 66 mm	Red	Nezahualcoyotl
	$200		Green	Sor Juana Inés de la Cruz
	$500		Brown	Ignacio Zaragoza
	$1,000		Cyan	Miguel Hidalgo y Costilla	Issued in Nov. 2004
These images are to scale at 0.7 pixels per millimeter, a standard for world banknotes.

[edit] Raised patterns for sight impaired

On April 5, 2004 the Chamber of Deputies approved a measure to demand that the Banco de México produce by January 1, 2006 notes and coins that are identifiable by the blind population (estimated at more than 750,000 visually impaired citizens, including 250,000 that are completely blind).^[1]

Since December 2005, $100, $200, and $500 MXN banknotes include raised, tactile patterns (like Braille), meant to make them distinguishable for people with vision incapacities. This system has been questioned and many demand that it be replaced by actual Braille so it can be used by foreigners not used to these symbols. The Banco de México, however, says they will continue issuing the symbol bills.

The raised, tactile patterns are as follows:

Value	Bill	Description of pattern
$100		Five diagonal lines side by side, with a negative slope, each broken up into three segments.
$200		Small broken-up square pattern.
$500		Four horizontal lines under each other, each broken up into three segments.

Use Yahoo! Finance:	AUD CAD CHF EUR GBP HKD JPY USD
Use XE.com:	AUD CAD CHF EUR GBP HKD JPY USD
Use OANDA.com:	AUD CAD CHF EUR GBP HKD JPY USD

[edit] International use

Some establishments in near border areas accept pesos as currency, mainly supermarkets. Recently, a chain of pizza restaurants in the southern United States has started to accept the currency which has been a controversial topic in the U.S.A.^[2]

[edit] See also

• Economy of Mexico
• 1994 economic crisis in Mexico
• Mexican Silver Libertad

[edit] Reference

[edit] External links

• Don's World Coin Gallery - Mexico
• Ron Wise's World Paper Money - Mexico ^{Mirror site}
• The Global History of Currencies - Mexico
• Global Financial Data currency histories table
• Notes and coins at the site of Banco de México (Mexico's Central Bank)
• Higher resolution images of current series of Mexican banknotes. Conditions of use.

v • d • e Currencies named peso or similar
Current	Argentine peso · Chilean peso · Colombian peso · Cuban peso · Cuban convertible peso · Dominican peso · Mexican peso · Philippine piso · Uruguayan peso
Defunct	Argentine peso moneda nacional · Argentine peso ley · Argentine peso argentino · Bolivian peso · Costa Rican peso · Ecuadorian peso · El Salvadoran peso · Guatemalan peso · Guinea Bissau peso · Honduran peso · Nicaraguan peso · Paraguayan peso · Puerto Rican peso · Spanish peso · Venezuelan peso

v • d • e Currencies of the Americas
North America	Canadian dollar · Danish krone (Greenland) · Euro (Saint-Pierre et Miquelon) · U.S. dollar · Mexican peso
Central America	Belize dollar · Costa Rican colón · Guatemalan quetzal · Honduran lempira  · Nicaraguan córdoba · Panamanian balboa · U.S. dollar (El Salvador)
Caribbean	Aruban florin · Bahamian dollar · Barbadian dollar · Bermuda dollar · Cayman Islands dollar · Cuban peso · Cuban convertible peso · Dominican peso · East Caribbean dollar (Anguilla, Antigua and Barbuda, British Virgin Islands, Dominica, Grenada, Montserrat, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines)  · Euro (Guadeloupe, Martinique) · Haitian gourde · Jamaican dollar · Netherlands Antillean gulden · Trinidad and Tobago dollar · U.S. dollar (British Virgin Islands, Puerto Rico, Turks and Caicos Islands, U.S. Virgin Islands)
South America	Argentine peso · Bolivian boliviano · Brazilian real · Chilean peso · Colombian peso · Euro (French Guiana) · Falkland Islands pound · Guyanese dollar · Paraguayan guaraní · Peruvian nuevo sol · Surinamese dollar · U.S. dollar (Ecuador) · Uruguayan peso · Venezuelan bolívar