NAFTA

• NAFTA was signed in 1994 and created a trade bloc between Mexican, the United States and Canada. NAFTA ensured that the three nations would eliminate all barriers of trade and investment, including tariff. The pact was intended to support economic prosperity throughout the three member nations. This included an assurance that the three member nation's currencies, as a form of investment, would be allowed to be traded freely and without regulation across borders.
  
  

Mexican Peso

• The Mexican peso is usually among the 15 most traded currencies in the world. NAFTA, among other things, ensured that the Mexican peso's conversion rate to other currencies is a matter of free trade. However, since the peso is not as stable as other currencies, such as the U.S. dollar, it is not valued as highly and can be susceptible to devaluation, especially because many Mexican nationals prefer to hold U.S. dollars. This is one of the factors that led to the Mexican Peso Crisis of 1994.
  
  

U.S. Dollar

• The U.S. dollar is one of the strongest, most stable and frequently traded currencies in the world, along with the British pound sterling and, more recently, the euro. NAFTA did not have too much of an effect on the U.S. dollar, as it was already in high circulation in both Canadian and Mexican markets. However, the relative strength of the U.S. dollar has been blamed for incidents of devaluation in other currency markets, such as the peso.
  
  

Canadian Dollar

• The Canadian dollar is among the top 10 most frequently traded currencies in the world. It is used by some nations as a reserve currency. This is mostly because of Canada's long history of political and economic stability. The Canadian dollar is unique in that business owners in Canada can legally decide not to accept Canadian currency by virtue of the Canadian Currency Act. NAFTA is thought to have had minimal effect on the Canadian dollar, in part because trade between the U.S. and Canada was already free before NAFTA was signed.
  
  

Amero

• The amero is a theoretical unit of money that has been discussed by some economists. It would involve a uniform currency for the member nations of NAFTA modeled after the European Union's euro. While a number of conspiracy theorists claim that the member nations are already working toward adopting the amero, it has yet to have become a matter of serious political discussion. There is some evidence that it would create some social conflict and negative economic effects.