 In spite of increased oil prices in the late 1970s (Mexico is a producer and exporter), Mexico defaulted on its external debt in 1982.As a result, the country suffered a severe case of capital flight and several years of acute inflation and peso devaluation, leading to an accumulated inflation rate of almost 27,000% between December 1975 and late 1988.On 1 January 1993, Mexico created a new currency, the "nuevo peso" ("new peso", or MXN), which chopped three zeros off the old peso (One new peso was equal to 1,000 old MXP pesos).