The Mexican Peso was initially based on Spain’s official currency, which is the silver dollar. The Mexican name originated from the 8-real coins that were issued by Spain for Mexico, which were cast from pure silver. It was the first currency to use a discrete border and accurate weight to guard against counterfeits, which made it very popular.
Economy
The Mexican economy is supported by the private sector. And its economy was based on manufacturing, though agricultural sector went down, it was still considered the source of employment.
The Mexican economy went from a deep transformation since 1980s, which is a result of economic laissez-faire and becoming a member of the North American Free-Trade Agreement.
In 2003, mining reached a GDP of 1.4%, yet it devalues the significance of oil production in the economy. Oil exports symbolized 11.3% of the entire export earning of the country.
History
In the late 18th century, the Mexican Peso was used as a benchmark for all North American countries. On July 6, 1785, the US Dollar was valued at a rate comparable to the Peso, and was widely used as currency in the United States well after USD bills were introduced.
After gaining independence from Spain in 1821, Mexico continued to use the Peso as its currency.
In 1863, the first centavo coins were issued; a centavo was one-hundredth of a Peso. Another series of 1 peso coins was issued the following year until 1897.
In 1905, the value of golden Peso was reduced to 49.3%, but the silver Peso remained unchanged.
After the Oil Crisis of the 1970s, Mexico faced many years of inflation and debt defaults, leading to the replacement of the currency with the Nuevo Peso. The Nuevo Peso was valued at 1000 Mexican Pesos.
