Dolar A Peso
In short
The exchange rate between the United States dollar and the Mexican peso determines how many pesos one dollar can buy.
In plain words
This is a way to compare the value of money from two different countries. If the dollar gets stronger, you get more pesos for every dollar you spend.
A simple example
If the rate is 20 pesos to 1 dollar, you can trade 10 dollars to get 200 pesos. If the rate changes to 21, your 10 dollars will buy 210 pesos instead.
Why it matters
It affects the price of imported goods and how much money travellers have when visiting Mexico. It also impacts businesses that sell products across borders.
Easy to mix up
Do not confuse the exchange rate with the total amount of money held in a country's central bank.