Mexican peso
From Open Encyclopedia
The peso is the currency of Mexico. The Mexican peso was the official currency for all of North America until the United States dollar began to be issued in 1792.
The symbol used for the peso is "$", while the 100 centavos into which it is divided are represented by "¢". The current ISO 4217 code for the Mexican peso is MXN; prior to the 1992 revaluation (see below), the code "MXP" was used. Image:121-603.jpg
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History
First Peso
The peso was initially the name of the eight real coin issued in Mexico by Spain. This were the so-called Spanish dollars or pieces of eight.
The name peso means weight, and this is a reference to the principal characteristic of the coin. During colonial times, the silver mines of Mexico supplied ample sources of pure silver and, more importantly, the peso was the first coin to have a border that made it easy to detect if the coin had been tampered with. It was a common practice to cut or wear down the edges of gold and silver coins, thus obtaining raw precious metal. Since the peso was a coin of pure silver with an exact weight, it became very popular: Mexican pesos were used in China and the Philippines.
After a decree adopted by the United States on 6 July 1785, the peso became the official currency of all North America; it also became the foundation for the U.S. monetary system, at a rate of one peso to one dollar. The US dollar was not issued until 2 April 1792, but the peso continued to be officially recognized and used until 21 February 1857. In Canada, it remained a legal medium of payment until 1858.
After Mexican independence in 1822, the new government continued the Spanish monetary of system of 16 silver reales = 1 gold escudo, with the peso of 8 reales the largest silver coin. Paper money was also issued, denominated in pesos.
In 1863, the first issue was made of coins denominated in centavos, worth one hundredth of the peso. This was followed in 1866 by coins denominated one peso. Coins denominated in reales continued to be issued until 1897. In 1905, the gold content of the peso was reduced by 49.3% but the silver content of the peso remained initially unchanged. However, from 1918 onward, the silver content of the peso declined, eventually disappearing in 1970 when the first cupro-nickel pesos were issued.
Second Peso
Throughout most of the 20th century, the Mexican peso remained one of the most stable currencies in Latin America, since the economy did not experience periods of hyperinflation common to other countries in the region. However, after the Oil Crisis of the late 1970s, Mexico defaulted on its external debt in 1982, and experienced several years of inflation and devaluation until a government economic strategy called the "Stability and Economic Growth Pact" (Pacto de estabilidad y crecimiento económico, PECE) was adopted under President Carlos Salinas. On 1 January 1993, the Bank of Mexico introduced a new currency, the nuevo peso ("new peso", or MXN), written "N$" followed by the numerical amount. One new peso, or N$1.00, was equal to 1,000 of the obsolete MXP pesos.
On 1 January 1996, the modifier nuevo was dropped from the name and new coins and banknotes – identical in every respect to the 1993 issue, with the exception of the now absent word "nuevo" – were put into circulation. The ISO 4217 code, however, remained unchanged as MXN.
Nowadays, due to the stability of the Mexican economy, and the growth in foreign investment, the Mexican peso is among the 15 most traded currency units in the world, and the most traded in Latin America. It has been fairly stable for the last few years; since the late 1990s the peso has traded at about 10 to 1 to the U.S. dollar, and is currently about $10.8 per dollar. This makes it relatively easy to convert from dollars to pesos and back; the 50¢ coin (tostón) is worth about the same as a U.S. nickel, and a 200 peso note about USD $20.
Coins
The 8 reales piece of Emperor Augustin de Iturbide was a large silver coin, .903 fine, minted from 1822 to 1823. The obverse carried a variety of portraits of the Emperor, and the legend "August. Dei. Prov." and the date, or "Augustinus Dei Providentia" and the date. The reverse had several different versions of the Mexican 'eagle', with the legend "Constiiut.8.R.I.M.Mex.I.Imperatior."
The eagle was the "Aquila chrysaetos", or Golden Eagle. It was a traditional symbol of the aztec, but it was changed according to european heraldic traditions (see Coat of Arms of Mexico).
With the establishment of the republic in 1823, the Mexican 'eagle' moved to the obverse, with the legend "Republica Mexicana." The reverse featured a liberty cap with rays behind. The legend on the reverse reads, "8 R -mintmark- -date- -2 letter code- 10 Ds. 20 Gs." Mexico used the medieval system of dineros and granos to measure the fineness of their coins. Twelve dineros designated pure silver. Each dinero was divided into 24 granos. A coin of 10 Ds. 20 Gs equated to .902777 fine. These coins were minted from 1823 to 1897, even during Maximilian's rule.
Emperor Maximilian I of Mexico, the French puppet who ruled from 1864-1867, minted the first coin with the legend "peso" on it, in addition to establishing a decimalized currency. His portrait was on the obverse, with the legend "Maximiliano Emperador;" the reverse shows the imperial arms and the legends "Imperio Mexicano" and "1 Peso" and the date. They were struck from 1866 to 1867. Maximilian was shot by a firing squad.
The new Mexican republic continued to strike the 8 reales piece, but also began minting a 1 peso coin, of .903 fineness. The obverse featured the Mexican 'eagle' and the legend "Republica Mexicana." The reverse showed a pair of balances and the legend "Un Peso -mintmark- .9027." These were made from 1869 to 1873, and again from 1898 to 1909, with the Phrygian, or liberty cap taking the place of the balances.
The monetary reform of 1905 brought a new peso, the famous "Caballito," one of the most beautiful of Mexican coins. The obverse had the Mexican 'eagle' and the legends "Estados Unidos Mexicanos" and "Un Peso." The reverse showed a woman riding a horse, her hand lifted high in exhortation, and the date. These were minted in .903 silver from 1910 to 1914. The value of the peso could not keep up with the value of the silver in it. The peso was reduced in size in 1918, the 'eagle' changed, and the reverse again showing a liberty cap, "Un Peso" and the date. The silver content dropped to .800, and then to .720 in 1920 to 1945. A new silver peso of .500 fineness was struck in 1947; the Mexican 'eagle' on the obverse with the legend "Estados Unidos Mexicanos." The reverse showed Jose Maria Morelos, "Un Peso" -date- -mintmark- 14 gr .500." This was minted only from 1947-49. The silver content dropped to .300 in 1950, with a new portrait of Morelos on the reverse. No reference was made now to the silver content.
In 1957, the peso was dropped to .100 silver, the denomination and date moved to the obverse, and a new portrait of Morelos appeared. These were minted from 1957-1967. A special peso in the same fineness and size was minted in 1957 to commemorate Benito Juarez and the constitution of 1857. These were the last silver pesos.
In 1970, Mexico began minting copper-nickel pesos, with the same basic features, and the fourth different portrait of Morelos.
The coins commonly encountered in circulation have face values of 10¢, 20¢, 50¢, $1, $2, $5, $10, and $20. A $50 coin also exists and is legal tender, but it was not included in the 1996 issue; it is extremely rare and largely disliked by users. The $20 coin is slightly less rare, but disliked just as intensely. Coins worth 5¢ were also introduced at the changeover; they are now rare, however, and might even have been withdrawn from circulation. All the coins incorporate design elements from the Aztec Calendar.
(The $50 coin must be distinguished from the Mexican gold bullion 50-peso coin, which contains 37.5 grams (1.2067 troy ounces) of pure gold and, of course, does not circulate at face value.)
In 2004 the Bank of Mexico began the gradual launch of a new series of bimetallic $100 coins. These number 32 – one for each of the nation's 31 states, plus the Federal District. While the reverse of these coins bears the traditional Mexican coat of arms, their obverses show the individual coats of arms of the component states. The first states to be celebrated in this fashion were Tabasco, Tamaulipas, San Luis Potosí, Sinaloa, and Sonora. In circulation they are extraordinarily rare, but their novelty value counterbalances the unease most users feel at having such a large amount of money in a single coin. Although the Bank has tried to encourage users to collect full sets of these coins, issuing special display folders for the purpose, the high cost involved has worked against them. Bullion versions of these coins are also available, with the outer ring made of gold, instead of a bronze/aluminium alloy.
Source: Standard Catalog of World Coins.
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