Mexican Currency: Complete Guide to the Mexican Peso

If you’ve ever planned a trip to Cancún, sent money to family in Mexico, or thought about buying foreign currency as an investment, you’ve brushed up against the Mexican peso. For Americans, it’s one of the most relevant foreign currencies; not just because millions of us vacation in Mexico every year, but because the U.S. and Mexico are tightly linked through trade, culture, and finance.

Yet a lot of people don’t actually understand how the peso works. What do the bills and coins look like? Why does the peso symbol look exactly like the U.S. dollar sign? How much is a peso worth compared to USD? And, maybe most importantly, how can you avoid losing money when you exchange pesos?

That’s exactly what this guide is about. We’ll walk through the history, denominations, exchange rates, and practical tips so you feel confident handling Mexico’s local currency. Whether you’re a traveler, collector, or just someone exploring global currencies, you’ll find everything you need to know.

What Is the Currency of Mexico?

Overview

• Name: Mexican peso
• ISO code:MXN
• Currency symbol:$
• Centavo symbol:¢

Mexico’s official currency is called the Mexican peso, or in Spanish, peso mexicano. Its ISO code is MXN. Before 1993, the old peso used the code MXP, but we’ll talk about why that changed in a moment. The peso uses the same symbol as the U.S. dollar – $, which can be confusing. Imagine you’re looking at a restaurant menu in Mexico and see “$250.” No, it’s not 250 U.S. dollars for tacos. That’s 250 pesos, which, depending on the exchange rate, is closer to $14–$15 USD.

To avoid confusion in international contexts, people sometimes write it as Mex$, but in Mexico itself, the simple dollar sign is the norm. The peso is divided into 100 centavos (like cents in the U.S.). The symbol for centavos is ¢, so you might see “50¢” for a 50-centavo coin. In everyday conversation, Mexicans usually just say “peso” or use slang like baro for money in general.

What Is the Money Called in Mexico? Local Nicknames for the Peso

• Peso(s) – The standard and official name. If someone says “cien pesos,” they’re simply referring to 100 pesos.
• (Baro) – A very popular slang term for money in general, similar to saying “bucks” in English. Example: No tengo varo = “I don’t have money.”
• Lana – Another common slang word for money, literally meaning “wool.” It’s used casually in daily conversations.
• Plata – Literally “silver,” reflecting the historical link between silver and Mexican coinage. Often used in informal contexts.
• Billete(s) – Means “bill(s)” or “banknote(s).” If someone asks if you have billetes, they’re talking about paper money, not coins.
• Feria(s) – A colloquial way of referring to small change or coins.
• Moralla – Another term used for coins or spare change.
• Papalote – A slang word sometimes used for the 500-peso note because of its size and color.

A Brief History of the Mexican Peso

By the early 1990s, the numbers on banknotes had become unwieldy – think thousands of pesos for everyday purchases. To restore confidence, Mexico introduced the Nuevo Peso in 1993. One new peso equaled 1,000 of the old pesos. Over time, the “Nuevo” was dropped, and the simplified system stuck. That’s why today’s ISO code is MXN, while MXP refers to the pre-1993 currency.

The peso’s story goes back to the Spanish colonial era. In the 16th century, Spanish silver coins known as reales and the famous “pieces of eight” circulated widely. These coins were so trusted that they influenced currencies around the world, including the U.S. dollar. The word peso itself means “weight,” reflecting how much precious metal a coin contained. Fast forward to the late 20th century, and Mexico faced runaway inflation.

This revaluation stabilized the currency and modernized Mexico’s monetary system. Since then, the peso has grown into one of the world’s most traded currencies, especially across the Americas. And Mexico isn’t the only country with a peso. Argentina, Chile, Colombia, Cuba, the Dominican Republic, and Uruguay all use local versions of the peso. But the Mexican peso is the most widely traded and recognized globally.

Mexican Peso Denominations: Banknotes and Coins

What denominations do Mexican pesos come in? When you’re actually handling Mexican currency, you’ll be dealing with both bills and coins..

Banknotes

The current series of Mexican banknotes includes the following Mexican peso denominations:

• 20 pesos: Green, featuring Benito Juárez, one of Mexico’s most beloved presidents.
• 50 pesos: Purple, with independence hero José María Morelos.
• 100 pesos: Red, featuring Nezahualcóyotl, a philosopher-king from pre-Hispanic Mexico.
• 200 pesos: Light green, showing Sor Juana Inés de la Cruz, a brilliant writer and nun from the 1600s.
• 500 pesos: Blue, with iconic artists Frida Kahlo and Diego Rivera.
• 1,000 pesos: Pink, featuring Miguel Hidalgo, the father of Mexican independence.

Coins

On the coin side of the Mexican currency, you’ll find both centavos and peso coins:

• Centavos: 5¢, 10¢, 20¢, and 50¢.
• Pesos:1, 2, 5, and 10 pesos.

The peso coins are easy to spot because most are bi-metallic: a gold-colored center surrounded by a silver-colored ring. They feature Mexico’s coat of arms (an eagle devouring a snake on a cactus), which is also the country’s national symbol.

Interestingly, the 10-peso coin is one of the most frequently counterfeited coins in circulation. That doesn’t mean you’ll definitely run into fakes, but it’s something to be aware of when you’re handling cash.

What Do Pesos Look Like?

If you're wondering what Mexican money looks like, one thing you will notice quickly is the size difference. Each bill is slightly longer than the last, which makes it easy to distinguish them without looking too closely. The colors are bold and distinct too — purple for 50, green for 200, blue for 500 — so once you’ve used them a bit, you’ll recognize them instantly.

Modern Mexican banknotes are also some of the most secure in the world. Depending on the denomination, they’re printed on either paper or polymer (a durable plastic material). They include watermarks, holographic threads, transparent windows, and color-shifting ink to fight counterfeiting.

Who Issues and Prints Mexican Money?

Two main institutions are responsible for the Mexican money in circulation:

• Banco de México (Bank of Mexico): This is Mexico’s central bank, in charge of issuing banknotes, regulating the money supply, and managing monetary policy. If you want the official word on currency, they’re it.
• Casa de Moneda de México: This is the mint, responsible for producing coins. Fun fact? It was founded back in 1535 and is the oldest mint in the Americas.

In the past, Mexico sometimes had its banknotes printed abroad, like by the American Bank Note Company. Today, it produces its own notes with state-of-the-art security features.

Mexican Peso Commemorative Notes and Coins

Beyond everyday money, every now and then, Mexico also issues special commemorative currency to honor its history, culture, and milestones. While commemorative notes and coins are technically legal tender, their real worth often exceeds their face value. Collectors and investors prize them for their limited availability, historical themes, and artistry.

Commemorative Banknotes

Over the years, the Bank of Mexico has released limited-edition banknotes to celebrate major anniversaries. Some standout examples include:

• 200-peso note (2010): Issued to mark the bicentennial of Mexico’s Independence and the centennial of the Mexican Revolution. Its design features Father Miguel Hidalgo and José María Morelos, two of the nation’s most important independence leaders.
• 1000-peso note (2020): Released to commemorate 500 years since the founding of Mexico-Tenochtitlán and 200 years of Mexican Independence. This bill features imagery from both pre-Hispanic and colonial history.

Commemorative Coins

Commemorative coins are even more common, especially in the 20-peso denomination. Over the last decades, these coins have honored events like the 2010 bicentennial of Independence, the Mexican Revolution, and various cultural achievements.

One of the most famous pieces is the 50-peso gold coin, known as the Centenario, first minted in 1921 to celebrate 100 years of Independence. Featuring the Angel of Independence and the iconic Mexican coat of arms, the Centenario is now a prized collector’s item and bullion coin. Today, the Casa de Moneda de México continues to produce limited-edition silver and gold commemorative coins, which often appreciate in value due to their rarity and fine craftsmanship.

What Can You Do with Old Mexican Banknotes?

Historical banknotes in good condition and silver peso coins can be quite valuable as collector’s items. However, appraising the value of old coins and bills requires some degree of expertise. So, if you have old notes and coins, try to assess their current value, as they could be worth more than their regular monetary value.

Even if you have old notes that have no value as collectibles, you can exchange them for modern banknotes at the present-day value. The Bank of Mexico has a list of the present-day values of old banknotes that you can find here.

Mexican Peso Exchange Rate: How It Works & What Affects It

The exchange rate between the U.S. dollar and the Mexican peso is constantly shifting. It’s determined by supply and demand in global currency markets, influenced by a range of factors like trade balances, interest rates, and political events.

As of September 2025, the current MXN to USD exchange rate is around 17.20 pesos per U.S. dollar. That means $100 USD is roughly 1,720 MXN. But keep in mind, this number moves daily, so use our currency converter to get the latest rates.

So what makes the peso stronger or weaker? A few key factors include:

• Oil prices: Mexico is a major exporter, so global energy markets matter.
• U.S.-Mexico trade: Since the two countries are tightly linked, any changes in tariffs, agreements, or demand affect the peso.
• Inflation: If Mexico’s inflation is higher than in the U.S., the peso usually weakens.
• Interest rates: Banco de México adjusts rates to control inflation and stabilize the currency.
• Politics: Elections, reforms, or instability can push the peso up or down quickly.

For travelers, this means timing matters. Your dollar could stretch further or not as far, depending on when you exchange. To keep track, you can use our exchange rate alerts to get notified and lock in the best rates before you travel or buy pesos.

Practical Mexican Money Tips for Travelers

If you’re planning to visit Mexico, knowing a bit about how money works there will make your life much smoother.

First off, cash is still widely used. Big hotels and restaurants in cities take cards, but in small towns, local markets, and taxis, cash is king. Make sure to carry small bills and coins, as breaking a 500-peso note can be tricky at a taco stand.

Tipping is expected in many places, usually 10 to 15% in restaurants. Hotel staff, guides, and drivers also appreciate tips. While some tourist areas might accept U.S. dollars, the rates are usually poor. You’ll get much more value by paying directly in pesos.

Don’t exchange at airports, hotels, or tourist kiosks as their rates are usually poor with high fees, and avoid sketchy street vendors. Use trusted, licensed currency exchange services such as US First Exchange to buy Mexican pesos safely and at competitive rates before you land.

Buy or Sell Mexican Pesos at the Best Rates at US First Exchange

The Mexican peso is a fascinating currency rich in history, vibrant in design, and vital to both everyday life in Mexico and global trade. For travelers, knowing the denominations, customs, and exchange rates makes your trip smoother and less stressful. For investors or collectors, it opens a window into one of the world’s most dynamic currencies.

And for anyone looking to buy or sell pesos, the most important lesson is this: don’t take shortcuts. Get the best currency exchange experience by using a secure provider. US First Exchange is a licensed and regulated online exchange platform that makes buying or selling Mexican pesos quick, safe, and at competitive rates. Check out our up-to-date rates, enjoy fast shipping, and have peace of mind knowing your money is handled securely.

We handle all common Mexican peso denominations, so whether you need small bills for travel or larger notes for business, we’ve got you covered. When it comes to something as important as your money, it pays to go with a foreign exchange provider you can trust.