The Peso is the official currency that is used in Mexico. The peso is written using the standard dollar sign ($) and it is divided into 100 centavos (cents). These are denoted by the symbol ¢. The name peso is derived from the Spanish word meaning weight.
The Peso as it is used today came into existence in the year 1821. Mexico became an independent country in this year and the peso was then established as the main denomination, with paper pesos issued in the form of banknotes.
For most of the 19th and indeed the 20th Century the economy of Mexico was quite buoyant. Many other countries in Latin America experienced inflation to quite a frightening extent. However, Mexico enjoyed a period of relative stability. But this was all to change as a result of the global oil crisis which happened not just once but twice during the 1970s. As a direct result of this crisis, Mexico ended up defaulting on its debt to the rest of the world, in the year 1982. Mexico was then to undergo many years of inflation and eventually devaluation of its currency until the government adopted a pact known as the pact for stability and economic growth.
As part of this new pact, the Bank of Mexico decided that a new currency should be introduced. Thus, in 1993, the new peso which was also known as the Nuevo peso came into being. This was recognised by the symbol MXN which was written N$, then followed by the amount of money. So, four dollars would be written as N$ 4. 1000 of the old MXP pesos was now worth just one new peso.
The new peso carried it on until 1996 when it ceased to be called the new peso and was simply called the peso, however it really was the same as the 1993 series of notes.
Since this time, the Mexican economy has remained stable and it has also enjoyed a considerable amount of foreign investment. Indeed it now ranks amongst the top 15 global currency units that are the most traded in the world. This makes it a very stable currency.
One very interesting aspect to the Mexican peso which was sometimes known as the Spanish dollar, was that its use was quite extensive in the very early days of the United States. In the year 1785 this use resulted in the value of a US dollar being set to match the value of the Spanish dollar. The Spanish dollar or Mexican peso was also recognised within the United States until as late as 1857. It also continued to be a legally recognised currency in Canada until the year 1854.
The Spanish dollar has also been exclusive enough to be used as a yardstick against which other currencies have set their worth, namely the Straits dollar, which was introduced to provide a standard currency within the British colonies of Malaya and Borneo until the year 1939. It has also been involved in being a model for the Japanese Yen and the Hong Kong dollar as well as the Chinese yuan, so in its time it has been a very powerful and influential currency despite the fact that Mexico itself, has been and continues to be, a relatively poor country.
It is possible to use pesos at some (but not all) of the Mexican border towns of the United States. The acceptance of pesos within the border towns is not widespread, but some bars and restaurants will accept them. Indeed, one chain of pizza parlours known as Pizza Patron, announced in 2007 that it would accept Mexican pesos as a legal form of tender. This has led to quite a lot of debate within the United States as to whether or not this should be done and yet Canadian dollars are all widely accepted in towns near the Canadian border and this is seen as quite acceptable. So there seems to be some double standards in use on this issue.
Mexico is a very a large country and it borders the United States, Belize and Guatemala which makes it quite a diverse country, so it is difficult to provide information about all that the different parts that travellers may visit, so if it you are in doubt please check about the facilities available in the exact location you will be visiting.
ATM machines are really quite common in Mexico and you'll find them located in or at, just about every bank as well as at supermarkets, or shopping centres and often, but not always in the lobby of your hotel.
ATM machines will usually provide you with a better exchange rate than you would get at a bank exchanging traveller's cheques or cash. However for security reasons, it is always better to make sure that you use an ATM which is attached to a bank, since there have been instances where people have installed counterfeit ATM machines so that thieves can get your card number and your PIN number. Just be careful that it is a 'proper' ATM machine.
Most of the ATM machines will offer you the facility to communicate in either English or Spanish but the amounts of money will always be denoted as Mexican pesos. If you are visiting northern Mexico or a very tourist orientated location then it you may find that you will also be offered US dollars, however this is quite rare and you should not depend on this facility being available.
Whilst it is possible to use your credit or debit card when travelling in Mexico, it may also be sensible to take along a few travellers cheques or indeed some cash to keep you going in case you lose your debit or credit card. In this way you will always have some 'ready money'.
Mexico may have a bad reputation in terms of safety, however many millions of tourists visit Mexico each and every year and only a very few have a significant problems whilst they are in the country. Indeed, some statistics reveal that people are more likely to be a victim of crime when in the United States as opposed to Mexico, so the risk of crime is not too great.
However that being said, it is always sensible to take some basic precautions. Some tourists find that they may become the victim of a mugging or they may be pick pocketed. Obviously this can be quite distressing whilst on holiday.
There are some things that you can do to ensure your safety whilst travelling within Mexico. One of the very basic things that you should it never do is to hail a taxi on the street. Instead ask someone at the hotel to call a taxi for you or just go to a taxi rank where you will find official taxis. Some bogus taxis have been operating and they drive someone to a very remote spot and then proceed to rob them.
Always try to withdraw money from a cash point during the day when there should be people about. Never wear ostentatious jewellery in public. Always be very careful to ensure that a pick pocket cannot access your purse or wallet. In a very crowded area, make sure that you keep your hand on your wallet or that your purse is in the bottom of your handbag. It may also be prudent to use a money belt.
Try not to walk on the beach at night especially if you are a woman. The beaches tend to be quite deserted at night and you are particularly vulnerable if you go for a moonlight stroll on the beach.
Some frequent visitors to Mexico advocate that tourists and travellers should not drive at night. This is mainly due to the risk of getting lost and ending up in the wrong part of town. However if you are familiar with the area, and you feel comfortable driving at night then you are obviously free to do so, but you should be very, very careful.
Eating and drinking in Mexico is quite cheap and good value for money. Overall, the food tends to be cooked well and in quite hygienic conditions, but for extra protection it is always worth taking the basic precaution of washing your hands carefully, before eating.
Mexican cuisine is full of influences from other countries such as Spain and even India. This makes the whole eating experience quite an exciting one. The prices are also very reasonable.
Tequila is quite ubiquitous but for those who prefer something a little gentler, there is also plenty of wine to be had as well.
Mexico offers quite a range of shopping opportunities for everyone. There are plenty of exclusive boutiques in the tourist areas, but you will also find lots of very busy markets, which sell all kinds of trinkets and souvenirs. Various crafts are also on offer but you will find that you will pay more in the tourist areas, than you will in the smaller towns and villages.
One thing to remember is that if you want to venture into the back country to do your shopping, then you should at least be able to get by in Spanish because most of the people in the back country area, will not be able to speak English. However, the back country offers a real insight into what life is like in rural in Mexico.
For those who prefer their shopping to be a little more sanitised, there are many shopping centres and shopping malls to elicit your interest and tempt you to part with your cash. There are also some really interesting art galleries and craft shops. Here you will undoubtedly pay more for any work of art but you will find that the best arts and crafts are on offer here.
Mexico can offer a holiday to suit almost every taste, from a beach holiday where you simply relax in the sun, to a holiday where you go inland and see just how undeveloped some parts of rural Mexico really are.
While you are in Mexico, so long as you take some basic precautions, then you should be perfectly safe. It is quite a cheap country in terms of the budget that you will require in order to eat and drink, get around, see all the attractions and fantastic sights that Mexico has to offer. The weather is generally good and the people quite warm and friendly, which really does make it a great place to visit.