Centavos are a unit of currency used in many Latin American countries. They are the smallest denomination of the local currency, and are usually worth 1/100th of the main unit. The term 'centavos' is derived from the Spanish word for 'HUNDREDTH'. In Mexico, the PESO is the main unit of currency, and centavos are its smallest denomination. In Peru, the sol is the main unit of currency, and centavos are its smallest denomination.