The peso is the official currency of eight countries, including Mexico, Argentina, and Colombia. As a regional standard in Latin America, the peso facilitates substantial trade and investment activities within and across these nations. Each country's peso has distinct characteristics and economic implications that reflect unique monetary policies and economic conditions.

For businesses operating in these economies, daily transactions and financial operations will inevitably involve the peso. The Mexican peso plays a huge role in global finance, particularly in the North American region, and remains the third most traded currency from emerging markets as of 2026. The Argentine peso has experienced some volatility but is central to South American markets: under President Milei, Argentina lifted many currency controls in April 2025 and moved to a floating exchange-rate band (roughly 1,000–1,400 pesos per dollar), a policy shift short of the full dollarisation once proposed. The Colombian peso is more stable relative to other regional currencies. These currencies influence local pricing mechanisms and price setting in commodities markets, especially for products such as copper and oil.

For international businesses, operating in pesos can minimise currency conversion hassles and mitigate some risks associated with exchange rate fluctuations. However, the varying stability of the peso across different countries requires some careful financial planning and risk management. For example, the Mexican peso trades under a managed float, where the exchange rate is largely market-determined but subject to periodic central bank intervention, while the Argentine peso has cycled through stricter regimes, including a crawling peg – a system where the currency is allowed to depreciate against the dollar in small, preset increments rather than floating freely. This guide will cover the historical development of the peso, and how the peso functions for cross-border financial transactions and as official domestic currency.

What's in this article?

• How the peso became a regional currency
  
• How the peso influences global trade and markets
  
• Which countries use the peso?
  
• Countries that use the peso
  
• How Stripe Payments can help
  

How the peso became a regional currency

The term "peso" originally referred to the Spanish dollar, also known as the piece of eight. Introduced by the Spanish monarchs Ferdinand and Isabella, who reformed Spain's coinage system in 1497, the peso was a silver coin that became a standard of trade across the Americas and Asia due to its uniform size and quality – making it one of the first global currencies.

As Spain established colonies across the world, the peso became a common currency in many parts of Latin America and the Philippines and was used for trade within the empire and internationally. In the early 19th century, many Latin American countries gained their independence from Spanish rule, and newly formed nations such as Mexico, Argentina, and Colombia adopted the peso as their official currency. Each country minted its own version of the peso, leading to a variety of currencies with the same name but different values and designs.

Throughout the 20th century, many countries that used the peso experienced economic challenges, including hyperinflation, devaluation and redenomination, which affected the value of their respective currencies.

Today, the peso remains the official currency of several countries. The most widely recognised is the Mexican peso, a highly traded currency and a major player in the North American economy. Like most peso currencies, it's subdivided into 100 centavos. Other countries such as Argentina and Chile use pesos that are distinct in their economic context and monetary value. Despite facing numerous economic crises, the peso continues to be an integral part of the financial systems in several countries and embodies a long tradition of commerce and cultural exchange.

How the peso influences global trade and markets

While not as globally dominant as currencies like the US dollar or the euro, the peso – and particularly the Mexican peso – does have influence on the world economy, affecting trade and investment opportunities, commodity prices, and the monetary policy of each country in which it's used.

Mexican peso

• Facilitates trade: The Mexican peso is one of the most traded currencies from emerging markets. Its liquidity and volatility make it popular among forex traders, influencing foreign exchange markets and opportunities for arbitrage and hedging. Trade among the US, Mexico, and Canada totals nearly US$2 trillion a year, with Mexico ranking as the US's top trading partner in 2025. The Mexican peso also facilitates regional trade and economic integration for Latin America specifically, largely due to Mexico's substantial trade relationships with countries such as the United States and Canada.

• Indicates investor sentiment: The Mexican peso is often seen as a bellwether for emerging markets. Its performance can indicate investor sentiment towards developing economies, and international investors closely monitor its value. Its performance is closely tracked by international investors and by Banco de México, which uses exchange-rate stability as a key input for setting monetary policy. Fluctuations in the peso can affect market trends and investment flows into other emerging markets.

Colombian and Chilean pesos

• Set commodity prices: Chile and Colombia are major players in the commodity markets for copper and oil, respectively. The value of their pesos can influence global pricing and trading in these commodities, affecting international markets and economic activities far beyond their borders.
  

Argentine peso

• Signals emerging-market risk appetite: As one of Latin America's most-watched currencies, the Argentine peso's volatility often serves as a proxy for broader investor risk tolerance towards emerging markets. Argentina's periodic currency reforms and exchange-rate regime changes, including its 2025 shift to a floating band, make it a closely tracked case study for businesses assessing operational risk in the region.
  

Cuban peso

• Reflects a market in transition: Cuba's 2021 currency unification eliminated the dual peso system on paper, but a de facto multirate structure has persisted and even expanded since. Alongside long-standing fixed rates for state enterprises and tourism, the Central Bank of Cuba introduced a new floating exchange rate in December 2025, starting near 410 CUP/USD and aimed at capturing "real" market transactions from households and the private sector. That rate has climbed steadily, passing 500 CUP/USD by early 2026 and trading in the same range as the informal market by mid-2026 – a gap that has narrowed but not closed. The US dollar and euro remain the practical benchmarks for pricing and savings on the island, underscoring that Cuba's financial infrastructure is still very much in flux.
  

Dominican peso

• Supports a services- and tourism-driven economy: The Dominican peso underpins one of the Caribbean's most stable and fastest-growing economies, closely tied to tourism, remittances, and free-trade-zone manufacturing. Its relative stability compared to other Latin American currencies makes it a lower-volatility option for businesses operating in the region.
  

Philippine peso

• Anchors a major remittance and outsourcing economy: The Philippine peso plays a central role in Southeast Asia's economic landscape, shaped heavily by remittance inflows from overseas workers and the country's large business-process-outsourcing sector. Its performance offers businesses insight into consumer spending power and labour-market trends across the Philippines.
  

Uruguayan peso

• Indicates regional economic stability: Uruguay is often regarded as one of South America's most stable and business-friendly economies, and its peso reflects that reputation with comparatively low volatility. This makes it a useful benchmark for businesses evaluating lower-risk entry points into the broader Latin American market.
  

Which countries use the peso?

The peso is a currency name used by eight countries, primarily in Latin America. Each country issues its own version of the peso, and while these different versions share a name, each has its own distinct value and is not interchangeable with others.

The peso is the official currency in the following countries:

• Argentina: The Argentine peso had an average exchange rate of 0.0038 US dollars (USD) in 2023.

• Chile: The Chilean peso had an average exchange rate of 0.0012 USD in 2023.

• Colombia: The Colombian peso had an average exchange rate of 0.0002 USD in 2023.

• Cuba: The Cuban peso had an average exchange rate of 0.04167 USD in 2023.

• Dominican Republic: The Dominican peso had an average exchange rate of 0.0179 USD in 2023.

• Mexico: The Mexican peso had an average exchange rate of 0.0565 USD in 2023.

• Philippines: The Philippine peso had an average exchange rate of 0.018 USD in 2023.

• Uruguay: The Uruguayan peso had an average exchange rate of 0.0258 USD in 2023.

Countries that use the peso

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