What Currency Do You Use in Mexico?

Comparison of peso exchange rates in the US and Mexico

Mexico uses the Mexican peso. Its currency code is MXN, and its symbol is $. So, if you’re visiting Mexico and paying for food, hotels, shopping, or transport, you’ll normally pay in Mexican pesos.

The Mexican peso is also traded in the forex market. You’ll usually see it as part of a pair, such as USD/MXN, which compares the U.S. dollar with the Mexican peso.

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Important Insights About Mexico Currency

Mexico uses the Mexican peso.
Its currency code is MXN.
The peso uses the $ symbol.
One peso is divided into 100 centavos.
The Banco de México is Mexico’s central bank.
USD/MXN is the most familiar Mexican peso pair in forex trading.
The value of the peso can change because of interest rates, inflation, economic news, and changes in the U.S. economy.

What Is the Currency of Mexico?

The official currency of Mexico is the Mexican peso.

You’ll normally see prices written using the $ symbol.

For example:

$50 = 50 pesos
$500 = 500 pesos

There’s one thing to watch out for, though.

The U.S. dollar also uses the $ symbol.

So how do you know which one you’re looking at?

If you’re in Mexico, a price shown simply as $200 will normally mean 200 Mexican pesos unless the business clearly says otherwise.

You may also see MX$ used when someone wants to make it completely clear that they’re talking about Mexican pesos.

For international banking and forex trading, things are easier because the code MXN is used.

Term	What You’ll See
Currency	Mexican Peso
Currency Code	MXN
Symbol	$
Smaller Unit	Centavo
1 Peso	100 Centavos

ℹ️ Don’t confuse MXN with USD. Both the Mexican peso and U.S. Dollar use the $ symbol, but they’re completely different currencies.

What Does MXN Mean?

MXN is simply the three-letter code for the Mexican peso.

Currency codes help banks, traders, businesses, and payment systems avoid confusion.

Think about the $ symbol.

It could mean Mexican pesos.
It could mean U.S. dollars.
It could even refer to another currency that uses a dollar or peso symbol.

MXN removes that confusion.

In forex, currencies normally have these three-letter codes.

For example:

USD = U.S. Dollar
EUR = Euro
GBP = British Pound
JPY = Japanese Yen
MXN = Mexican Peso

So if you see USD/MXN on a forex platform, you already know what you’re looking at.

U.S. Dollar versus Mexican Peso.

Pretty simple.

What Is a Peso?

A peso is one unit of Mexico’s currency.

The word “peso” comes from Spanish and basically means “weight.”

The name has a long history connected to Spanish money and the use of precious metals.

Mexico has used different versions of the peso over its history, so today’s Mexican peso isn’t exactly the same money someone would have used hundreds of years ago.

The modern currency is identified internationally as MXN.

One peso can also be divided into 100 smaller units called centavos.

So:

1 peso = 100 centavos.

It’s basically the same idea as:

1 Dollar = 100 cents.

Easy Way to Remember: Pesos are the main units. Centavos are the smaller units. Think of pesos and centavos like Dollars and cents.

What Mexican Coins and Notes Are There?

If you’re actually spending money in Mexico, you’ll come across both coins and banknotes.

Coins are useful for smaller purchases, while banknotes cover larger amounts.

You’ll commonly see peso amounts such as:

$1
$2
$5
$10
$20
$50
$100
$200
$500

Not every amount on that list is necessarily the same type of money. Some are commonly represented by coins and others by notes.

For a visitor, you don’t really need to memorize everything before arriving.

The important thing is to know that prices are usually shown in pesos.

Can You Use U.S. Dollars in Mexico?

Sometimes, but don’t depend on it.

Mexico’s official currency is the Mexican peso.

Some businesses in tourist-heavy areas may accept U.S. dollars. You might come across this in places that receive lots of American visitors.

But that doesn’t mean USD is accepted everywhere.

Smaller shops, local restaurants, taxis, and other businesses may expect payment in pesos.

There’s another problem too.

Even when a business accepts U.S. dollars, the exchange rate it gives you might not be very good.

Let’s say something costs 500 pesos.

The shop might let you pay in dollars, but it chooses its own dollar-to-peso conversion rate.

You could end up paying more than you would have if you’d simply paid in pesos.

ℹ️ Don’t assume you can use U.S. dollars everywhere just because Mexico is next to the United States. The Mexican peso is the country’s official currency.

Why Does Mexico Use the $ Symbol?

This can seem strange if you’ve always thought “$” meant U.S. dollars.

But the symbol isn’t exclusive to the U.S. dollar.

The peso has a very long history, and the $ symbol has historical links to Spanish-American currency.

Today, several currencies around the world use some version of the dollar sign.

That’s why the three-letter currency code matters so much.

If you see:

USD 100

You know it’s 100 U.S. dollars.

If you see:

MXN 100

You know it’s 100 Mexican pesos.

No guessing required.

What is USD/MXN?

Now let’s connect the Mexican peso to forex trading.

USD/MXN is a currency pair. It compares the U.S. dollar with the Mexican peso. USD comes first, so that’s called the base currency. MXN comes second, so that’s called the quote currency.

Don’t worry too much about those terms yet.

Here’s the easy version.

Imagine USD/MXN is trading at 18.00.

That means:

1 U.S. dollar = 18 Mexican pesos.

If USD/MXN moves up to 19.00, one dollar now buys more pesos.

In simple terms, the U.S. dollar has strengthened against the peso.

If USD/MXN falls to 17.00, one dollar buys fewer pesos.

That means the Mexican peso has strengthened against the dollar.

USD/MXN Movement	Simple Meaning
Goes Up	USD is getting stronger against MXN
Goes Down	MXN is getting stronger against USD

That’s the basic idea behind the pair.

What Makes the Mexican Peso Go Up and Down?

Like any currency, the peso’s value changes.

There isn’t one single thing controlling it.

Interest rates are one major factor.

Mexico’s central bank can raise or lower interest rates depending on what’s happening in the economy.

Higher or lower rates can change how attractive the peso looks to investors.

Inflation matters too.

Inflation simply means prices are increasing.

Traders also pay attention to Mexico’s economic growth, employment, government decisions, and trade.

Then there’s the United States.

Because Mexico and the U.S. have such strong economic links, American economic news can also affect the peso.

Even global market fear can matter.

If investors suddenly become nervous and start moving money around, currencies such as MXN can experience bigger movements.

Who Manages Mexico’s Currency?

Mexico’s central bank is called Banco de México, often shortened to Banxico.

Think of it as Mexico’s main central bank.

It has an important role in the country’s monetary system.

One of the biggest things forex traders watch is what Banxico does with interest rates. Central banks use interest rates as one way of managing inflation and economic conditions. If Banxico unexpectedly changes rates or gives traders new information about future policy, the peso can move. This is why forex traders often check economic calendars.

They want to know when important central bank announcements are coming.

Is the Mexican Peso a Major Forex Currency?

The Mexican peso is actively traded, but it isn’t normally put in the same group as the biggest major currencies, such as USD, EUR, GBP, and JPY.

You may hear MXN described as an emerging-market currency.

That may sound complicated, but the basic idea is actually quite simple.

Mexico is considered an emerging-market economy, so its currency is commonly grouped with currencies from similar markets.

USD/MXN can therefore behave differently from a major pair such as EUR/USD.

For example, its spread may be wider.

It can also react strongly when investors become worried about global markets.

Mexican peso vs U.S. Dollar

Here’s an easy comparison:

Mexican Peso	U.S. Dollar
Code: MXN	Code: USD
Used in Mexico	Used in the United States
Symbol: $	Symbol: $
Central Bank: Banco de México	Central Bank: Federal Reserve
Traded in USD/MXN	Traded in USD/MXN

This is exactly why currency codes are useful.

Both currencies use the $ symbol.

MXN and USD tell you immediately which one is which.

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What Should You Remember About Mexico’s Currency?

You really only need a few basics.

Mexico uses the Mexican peso.

Its code is MXN.

Its symbol is $.

And 100 centavos make one peso.

If you’re traveling to Mexico, you’ll normally want to think in pesos rather than U.S. Dollars.

If you’re learning forex, you’ll most commonly see the peso as MXN, particularly in the USD/MXN currency pair.

Once you understand those basics, the rest becomes much easier.

Frequently Asked Questions