Where Are Pesos Used? A Guide for People Sending Money from the U.S.

The peso is a common currency name in several countries, mainly in nations throughout Latin America as well as the Philippines. In all, eight countries use their version of a peso

What is a Peso?

Reflecting historical connections to the Spanish Empire, the name “Peso” comes from the Spanish word for "weight,." Most contemporary pesos can trace their origins back to the Spanish dollar, or what was once called a "piece of eight."

What Countries Use Pesos?

The eight countries which use pesos are: Mexico, Argentina, Chile, Colombia, Cuba, The Philippines, the Dominican Republic, and Uruguay. Let’s take a look at the significance of the peso in each of these countries.

1. Mexico

Mexico has one of the most recognized currencies using the name peso. The Mexican Peso (MXN) has its origins in the Spanish colonial period of Mexico’s history, which lasted from the early 16th – early 19th centuries. At this time, the Spanish dollar circulated widely in the Americas. After Spain withdrew from Mexico, it adopted its own version of the peso as its official currency in 1823. The modern Mexican Peso underwent a major revaluation in 1993, when the "nuevo peso" (new peso) was introduced, with 1 new peso equaling 1,000 old pesos.

Today, the Mexican peso is the 15th most traded currency in the world and the most traded currency in Latin America. With the second largest economy in Latin America, Mexico plays a crucial role in regional trade and finance, making the Mexican Peso an important factor of the economy.

2. Argentina

Argentina’s first peso was introduced in 1826, shortly after it achieved independence from colonial rule. The country’s currency has undergone various incarnations and re-denominations over the last two centuries since then, due to the country's history of hyperinflation and economic instability. The current peso, the Argentine Peso (ARS), was introduced in 1992 after a series of previous currencies failed.

Despite issues with economic volatility, high inflation, and debt crises, Argentina's economy is one of the largest in Latin America. It remains a key player in both agriculture and natural resources.

3. Chile

The Chilean Peso (CLP) was first introduced in 1817 after Chile declared independence from Spain. The original peso underwent various changes and reintroductions before the current peso was re-established in 1975.

Chile's economy is now considered one of the most stable and prosperous in Latin America. The country is the world's largest producer of copper, a significant source of revenue. The Chilean Peso benefits from this economic stability, although it can be affected by fluctuations in global copper prices.

4. Colombia

The Colombian peso (COP) has been the country's official currency since 1810, after gaining independence from Spain. It replaced the real, the currency in use during the colonial period.

Colombia has a diverse economy with major sectors including oil, mining, agriculture, and manufacturing. The peso is relatively stable, but like many other emerging market currencies, it can be vulnerable to external shocks, particularly changes in oil prices and political instability.

5. Cuba

For the past three decades, Cuba used two currencies: the Cuban Peso (CUP) and the Cuban Convertible Peso (CUC). The CUP was primarily used by locals, while the CUC, which was pegged to the US Dollar, was introduced to facilitate tourism and international trade, creating a two-tiered pricing system within the country. In 2021, Cuba began phasing out the CUC, leaving Cuba with one primary currency, the CUP.

Cuba's economy is centrally planned and heavily dependent on tourism, remittances, and international aid. The dual currency system was originally designed to address economic disparities and attract foreign currency, but it also created complexities in the economy. The ongoing reforms aim to simplify the monetary system and improve economic efficiency.

6. Dominican Republic

The Dominican peso (DOP) has been the official currency since 1844, following the country's independence from Haiti. The currency has experienced various reforms and stabilizations over the years.

The Dominican Republic's economy is one of the fastest-growing in the Caribbean, and one of the largest overall in the Caribbean, driven by tourism, manufacturing, mining, and agriculture. The Dominican Peso has remained relatively stable, benefiting from steady economic growth and foreign investment, particularly in tourism and real estate.

7. Philippines

The Philippine Peso (PHP) has its origins in the Spanish colonial period (1565 – 1898). The Spanish real circulated in the archipelago until the modern peso was introduced in 1852. It has undergone various changes and re-denominations since then.

Philippine Peso: Denominations

When it comes to currency denominations in the Philippines, you’ll come across a variety of banknotes and coins in everyday transactions.

Banknotes are most commonly available in the following denominations:

• 20, 50, 100, 200, 500, and 1000 pesosWhile there are also 5 and 10 peso notes, these are rarely seen in circulation today, as coins have largely replaced them.

Coins are issued in:

• 1, 5, and 10 peso pieces

• Smaller values are minted as sentimos, with coins of 1, 5, 10, and 25 sentimos still in use (though the smaller denominations are less frequently encountered).

Prices in shops and restaurants will be marked with the ₱ symbol, making it easy to identify peso values during your travels or transactions.

Take the Philippine peso as an example. The currency code is PHP, and you'll often see the symbol ₱ used to denote prices. Each peso is divided into 100 smaller units called sentimos. Philippine banknotes come in denominations of 5, 10, 20, 50, 100, 200, 500, and 1,000 pesos, though the 5 and 10 peso notes are rarely seen these days. Coins are available in 1, 5, and 10 peso denominations, alongside sentimos coins in 1, 2, 5, 10, and 25 denominations.

Understanding the details of a country's currency—whether it's the denominations you'll encounter or the regions where it's accepted—can make exchanging and handling foreign money that much smoother.

Currency Code and Symbol for the Philippine Peso

The Philippine peso is denoted by the currency code PHP and the symbol ₱. Prices throughout the country are typically displayed using the ₱ symbol, making it easy to recognize at a glance.

Subdivisions of the Philippine Peso

The Philippine peso is divided into 100 smaller units called sentimos, similar to how cents relate to dollars or euros. Sentimo coins are commonly used in everyday transactions for small purchases, rounding out the country’s decimalized currency system.

Access to ATMs in the Philippines

Accessing ATMs in the Philippines can be hit or miss, particularly once you venture beyond major cities like Manila or Cebu. While urban centers and large towns generally offer a decent spread of ATMs, many rural areas and even well-known tourist islands often have limited or unreliable machines.

To avoid cash shortages, it's wise to withdraw enough local currency while in the cities, as smaller towns may have only a few ATMs—if any—and these can occasionally run out of cash or be out of service. Planning ahead ensures you have enough pesos on hand throughout your travels.

Using Credit and Debit Cards in the Philippines

Credit and debit cards like Visa and Mastercard are generally accepted in larger cities and at popular tourist destinations across the Philippines. You'll find that hotels, shopping malls, and upscale restaurants in places like Manila and Cebu are well-equipped to process card payments. However, it’s still a smart move to keep some cash on hand, especially when heading to local markets, small shops, or rural areas where card facilities might be scarce. This ensures smoother transactions wherever your Philippine adventures may take you.

The Philippines has a mixed economy with strong sectors in services, manufacturing, and agriculture. The peso is relatively stable but can be affected by external factors such as remittances from overseas Filipino workers and global economic conditions. The country has seen steady economic growth in recent years, bolstered by a young and growing population.

Comparing Live Philippine Peso Exchange Rates

If you're sending money to the Philippines or planning a trip, getting the best value when exchanging U.S. dollars to Philippine pesos (PHP) is important. Websites like XE, OANDA, or Google Finance let you compare live exchange rates. However, keep in mind these are reference rates and don’t include fees charged by banks or money services.

If you're using a money transfer service like Sharemoney, the platform will show you the actual exchange rate you'll get—usually more competitive than banks or airport kiosks.

Using U.S. Dollars in the Philippines

While the Philippine Peso (PHP) is the official currency, U.S. dollars are accepted in limited situations—mostly in tourist-heavy spots like major hotels, some high-end restaurants, and resorts in Manila or Cebu. But for most local purchases, transportation, and small businesses, you'll need pesos.

To avoid hassle, it's best to send pesos directly to family or friends through a trusted remittance service or exchange U.S. dollars upon arrival at banks or authorized money changers, rather than relying on convenience desks in hotels or airports.

Tips for Getting the Best Exchange Rate in the Philippines

1. Know the Real Exchange Rate Before sending money or exchanging cash, check the mid-market rate online to understand what a fair rate looks like. Services like Sharemoney show the rate you'll receive upfront, with no hidden fees.

2. Always Choose Local Currency at ATMs If you withdraw money from an ATM in the Philippines and it asks if you want to be charged in USD or PHP, always choose PHP. Selecting USD often adds hidden fees or poor conversion rates from the local bank.

3. Avoid Airport Kiosks for Exchanges Airport counters and hotel currency desks are convenient but often charge high markups. For better rates, use major banks or money changers in city centers or shopping malls.

4. Use U.S.-issued Travel-Friendly Cards If you're traveling, consider debit or credit cards that waive foreign transaction fees, such as Capital One, Charles Schwab, or certain Chase Sapphire cards. These usually offer favorable exchange rates when spending in pesos.

Withdrawing Money from ATMs in the Philippines

When using an ATM, always opt to be charged in PHP. This ensures your U.S. bank handles the currency conversion, which usually means better rates and lower fees compared to dynamic currency conversion (DCC) offered by the ATM.

8. Uruguay

The Uruguayan Peso (UYU) was introduced in 1896, replacing the previous currency, the Uruguayan peso fuerte. It has undergone various reforms and re-denominations, most notably in the early 1970s.

Uruguay's economy is characterized by a strong agricultural sector, particularly in beef and soybeans, and a growing services sector. The peso is relatively secure compared to other South American currencies, reflecting the country's stable political environment and prudent economic policies.

Economic Stability and Volatility

While some countries that use pesos, like Chile and Uruguay, maintain relatively stable currencies, others like Argentina and Cuba have faced significant challenges. Hyperinflation, political instability, and external economic shocks are common issues that affect the value of the peso in these countries.

Global Economic Integration

Countries using the peso are increasingly integrated into the global economy. For instance, Mexico and Chile are key players in global trade, while the Philippines relies heavily on remittances from its diaspora. This integration brings opportunities for growth but of course also exposes these economies to global market fluctuations.

Digital and Technological Adaptations

In our increasingly digital world, many countries that use the peso have adapted with digital / technological innovations. Several countries, like Mexico, Argentina, and Chile, have established, flourishing fintech industries that allow for digital banking, lending, trading, and payments. Digital wallets are also popular in peso-using countries, and many of them are exploring cryptocurrency and blockchain platforms as well.

International Recognition and Exchange

Most forms of pesos are recognized internationally, though some, like the Argentinian Peso may not be accepted as widely. Others, like the Cuban Peso have more limited recognition worldwide. However, most pesos are generally accepted for exchange in regions with economic ties to the issuing country or significant expatriate populations. Major financial institutions, currency exchange bureaus, and tourist destinations usually facilitate the exchange of pesos for travelers and individuals conducting international transactions.

Where to Exchange Your Currency

If you’re deciding whether to exchange currency at the airport or your hotel, it’s usually best to look elsewhere. Airport kiosks and hotel desks tend to offer less favorable exchange rates, often adding extra fees or markups that can quietly eat into your travel funds.

For a better deal, consider visiting reputable banks or official exchange bureaus in town, or withdrawing local currency from an ATM once you’ve arrived—these options typically provide more competitive rates and greater transparency. With a little planning, you can maximize the value of your pesos and avoid unnecessary costs.

Sharemoney sends money to nearly all the world’s nations that use a peso. If you plan to travel or stay in a country that uses the peso, or if you need to send money to those living in a peso-using country, check out Sharemoney’s services to see how we can make your money transfers easier, with our fast and safe service.

If you’re in the United States and need to send money to the Philippines, Sharemoney offers a simple, secure, and affordable way to transfer funds online. Whether you're supporting family, covering essential expenses, or just making sure someone back home has what they need, you can count on Sharemoney for fast delivery and an easy-to-use process.

Conclusion

A significant currency name in various countries, the peso reflects a shared colonial history and diverse economic landscapes. While each country's experience with the peso differs, common themes of historical influence, economic stability, and global integration emerge. Understanding these contexts provides insight into the complex dynamics that shape the value and stability of the peso across different nations. If you need to send or receive money in pesos, Sharemoney may be able to assist you with your needs.