Definition – What does Mexican Peso (MXN) mean?
The Mexican Peso (MXN) is the official currency of Mexico. It is issued by the Banco de Mexico (Mexico’s central bank). The Banco de Mexico allows the peso to float freely and the Mexican economy as a whole has seen a conversion to a free market model. Although not a currency block, Mexico is part of the North American Free Trade Agreement (NAFTA) with the U.S. and Canada.
ForexTerms explains Mexican Peso (MXN)
Mexico has made significant economic progress, transitioning from a largely agricultural economy to a manufacturing economy. Mexico also has significant natural resources that are often overlooked due to the proximity to the U.S. and Canada. The peso has proved to be a very stable currency in relation to the Canadian and U.S. dollars. This separates the Mexican peso from many of the more volatile currencies in Latin America.
