Mexican Peso Exchange Rate To Us Dollar History
The Mexican Peso is the official currency of Mexico and is abbreviated as MXN. The exchange rate of the Peso with the US Dollar is a topic of great interest for investors, traders, and tourists who visit Mexico. In this article, we will discuss the history of the Mexican Peso exchange rate to the US Dollar.
Early History
The Mexican Peso was introduced in 1823, replacing the Spanish dollar as the official currency of Mexico. At that time, the exchange rate was 1 Peso to 8 Spanish reals. The Peso was initially based on the silver standard, with 1 Peso being equivalent to 27.073 grams of pure silver.
In 1910, the Mexican Revolution broke out, which led to a period of instability and economic uncertainty. As a result, the value of the Peso declined, and the exchange rate with the US Dollar increased.
Devaluation of the Peso
In the 1970s, Mexico experienced a period of rapid economic growth, which led to an increase in imports and a decrease in exports. To address this imbalance, the Mexican government began to devalue the Peso, which caused the exchange rate with the US Dollar to increase.
In 1976, the Peso was devalued by 50%, which led to a sharp increase in inflation and a decrease in the purchasing power of the Mexican people. In 1982, the Peso was devalued again, this time by 60%, which led to a debt crisis and a period of economic instability.
Stabilization of the Peso
In the 1990s, the Mexican government implemented a series of economic reforms to stabilize the Peso and reduce inflation. These reforms included the introduction of a new currency, the Nuevo Peso, which was equivalent to 1000 old Pesos.
In 1994, the Peso was again devalued, this time by 15%, which led to a period of economic recession. However, the Mexican government was able to stabilize the currency by implementing strict monetary policies and by receiving a bailout from the International Monetary Fund.
Current Exchange Rate
As of August 2021, the exchange rate of the Mexican Peso to the US Dollar is approximately 20.16 MXN to 1 USD. This represents an improvement from the devaluation of the Peso in the 1980s and 1990s and reflects the stability of the Mexican economy in recent years.
Conclusion
The history of the Mexican Peso exchange rate to the US Dollar reflects the economic and political developments of Mexico over the past two centuries. While the Peso has experienced periods of volatility and devaluation, the Mexican government has implemented reforms to stabilize the currency and improve the economic situation of the country. The current exchange rate of the Peso with the US Dollar reflects the stability and growth of the Mexican economy in recent years.