What Currency Does Mexico Use?

What Currency Does Mexico Use? (UK Traveller’s Guide)

If you’re planning a holiday to Mexico—whether for the beaches of Cancun, the culture of Mexico City, or a resort in Playa del Carmen—it’s important to know what currency you’ll be using. Mexico has its own national currency that’s distinct from the US dollar or any European currencies. This guide explains what currency is used in Mexico, how to handle money there, and what UK travellers should watch out for.

What Is the Official Currency of Mexico?

The official currency of Mexico is the Mexican peso.

• Currency name: Mexican peso

• Currency symbol: $ (same as US dollar, but refers to pesos locally)

• ISO code: MXN

• Subunit: 1 peso = 100 centavos

The peso is issued and managed by the Bank of Mexico (Banco de México).

To avoid confusion with the US dollar, prices are sometimes marked as MX$ or MEX$.

Are US Dollars Accepted in Mexico?

Yes—but with limitations. US dollars (USD) are accepted:

• In tourist-heavy areas (Cancun, Cabo San Lucas, Playa del Carmen)

• By resorts, hotels, and some tour operators

However:

• The exchange rate is rarely favourable

• Change is usually given in MXN

• You’ll get better value paying in pesos, especially in local shops, taxis, and restaurants

British pounds (GBP) are not accepted for payments.

How Does Currency Work in Mexico?

• Prices are listed in MXN throughout the country

• Credit and debit cards are accepted in hotels, supermarkets, and restaurants, particularly in cities and resorts

• Cash is preferred or required for small purchases, street food, taxis, and rural areas

• ATMs are widely available and dispense Mexican pesos

• Tipping is customary and done in pesos

The peso is a high-denomination currency, with common notes including MX$20, MX$50, MX$100, MX$200, MX$500 and MX$1,000.

Tips for UK Travellers

• Use a travel debit card like Starling, Monzo, Chase or Wise to avoid foreign transaction fees

• Always choose to pay in pesos (MXN) rather than GBP or USD to avoid poor exchange rates

• Use ATMs attached to banks, not standalone machines, for safety and better exchange rates

• Carry small notes and coins for tipping and local markets

FAQs

Can I use pounds in Mexico?
No. Only Mexican pesos and (in some places) US dollars are accepted. GBP must be exchanged before use.

Is Mexico affordable for UK visitors?
Yes—Mexico generally offers excellent value for food, accommodation, and activities compared to the UK.

Should I bring pesos with me or withdraw cash there?
Many travellers withdraw pesos from ATMs on arrival using a fee-free travel card, but having a small amount of cash is useful for the first day.