The currency of Mexico is the Mexican peso, abbreviated MXN and written with the dollar sign "$". As of 2026, one US dollar is worth roughly 17 pesos, though the rate moves daily. The peso is divided into 100 centavos and is issued by the country's central bank, the Banco de México (Banxico). It is the most heavily traded currency in Latin America and one of the most liquid in the entire emerging-market world.
The Peso at a Glance
If you are spending money in Mexico, here are the essentials worth knowing:
- Official name: Mexican peso (peso mexicano)
- ISO code: MXN
- Symbol: $ — often written "MX$" to distinguish it from the US dollar
- Subunit: 1 peso = 100 centavos
- Issuing authority: Banco de México (Banxico)
One of the most common surprises for first-time visitors is that the peso uses the same "$" sign as the US dollar. A menu listing "$120" means 120 pesos, not 120 dollars — so a meal that looks alarmingly expensive is usually a bargain once you do the conversion.
A Currency With Global History
Mexico's money carries one of the richest pedigrees of any currency on earth. Before the Spanish arrived, Aztec markets used cacao beans and lengths of cotton cloth as units of exchange. After colonization, silver mined in Mexico was struck into the famous Spanish dollar, the real de a ocho — the "piece of eight." Minted in enormous quantities in Mexico City, this silver coin became the world's first truly global currency, circulating across Asia, Europe, the Spanish Americas, and even the early United States.
The "$" symbol itself is widely believed to have originated from these Spanish-Mexican silver pesos before it was adopted in the United States. The modern peso descends directly from this lineage. In 1993, after years of high inflation, Mexico introduced the nuevo peso, lopping three zeros off the old currency so that 1,000 old pesos became one new peso. The "nuevo" label was later dropped, leaving the peso used today.
Banknotes and Coins
Mexican coins come in denominations of 50 centavos, 1, 2, 5, 10, and 20 pesos, with higher-value coins being chunkier and bimetallic. Banknotes circulate in 20, 50, 100, 200, 500, and 1,000 pesos. Each note is a different color and celebrates a figure or theme from Mexican history:
- $1,000: Heroes of the Mexican Revolution
- $500: Benito Juárez, the reforming 19th-century president
- $200: Leaders of the independence movement
- $100: Sor Juana Inés de la Cruz, the colonial-era poet and scholar
- $50: Featuring the axolotl, the endangered salamander native to Mexico City's lakes
- $20: Themes of Mexican independence and history
Banxico has been rolling out a striking new series of polymer notes with vertical designs, vivid ecosystems, and advanced security features. The redesigned 100-peso note won the International Bank Note Society's "Banknote of the Year" award for 2020, a rare honor that put Mexican design on the global stage.
The Peso in the Modern Economy
For an emerging-market currency, the peso is unusually important to global finance. It is among the most actively traded currencies in the world and the dominant one in Latin America, which means it is easy to exchange almost anywhere. That liquidity is partly a legacy of Mexico's tight integration with the United States economy through trade and remittances.
The peso has not always been stable, however. The 1994–95 "Tequila Crisis" triggered a sharp devaluation that rippled across other developing economies. In response, Mexico moved to a freely floating exchange rate and an independent central bank with an inflation-targeting mandate. Those reforms have made the peso far steadier in the decades since, even if it still swings with oil prices, US interest rates, and political headlines. For more on the country itself, see our mexico country guide.
Tips for Travelers Using Pesos
Cash still rules in much of Mexico, especially at street-food stalls, local markets, and small family-run businesses. Credit and debit cards are widely accepted in hotels, sit-down restaurants, supermarkets, and chain stores in cities and resorts. A few practical pointers:
- Use ATMs attached to bank branches rather than standalone machines for the best rates and security.
- US dollars are accepted in border towns and tourist resorts, but usually at unfavorable exchange rates — paying in pesos is almost always cheaper.
- Carry small bills and coins; vendors often cannot break a 500-peso note for a small purchase.
- Tipping 10–15% in restaurants is customary, and rounding up for taxis and service staff is appreciated.
Frequently Asked Questions
What is the currency symbol for the Mexican peso?
The peso uses the "$" sign, the same symbol as the US dollar. To avoid confusion, prices are sometimes written as "MX$" or simply followed by the code MXN. On a menu in Mexico, "$" always means pesos.
How many pesos are in a US dollar?
As of 2026, one US dollar is worth roughly 17 pesos, but the peso floats freely against the dollar, so the rate changes daily. Always check a current rate before exchanging large amounts.
Can I use US dollars in Mexico?
In border towns and major tourist resorts, dollars are often accepted, but you will usually get a worse deal than paying in pesos. Outside those areas, businesses expect pesos, so it is best to carry local currency.
Who issues the Mexican peso?
The peso is issued and managed by the Banco de México, or Banxico, the country's independent central bank, which is responsible for printing banknotes, minting coins, and keeping inflation under control.