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Mexican banknotes ever more popular

Categories : Cash is trust
August 21, 2017
Published in : Banknotes, Central Bank, Demand, Mexico
The central bank of Mexico will open a new printing plant to meet the growing demand for cash.
Communication Team

The demand for cash is seemingly not suffering from the recent digital payments boom in Mexico. On the contrary, Banxico – the country’s central bank – officially announced that 1,450 million banknotes will be issued this year, representing an 18.8% increase compared to 2016. This steady growth in demand reveals Mexicans’ preference for cash over cards or mobile payments.

The number 1,450 million includes all denominations combined, but the 500 pesos will represent the most significant share of the total (about 40%). According to Alejandro Alegre Rabiela – General Director of the Banxico –demand has grown to such an extent that the central bank has decided to open a second printing plant in El Salto, Jalisco. Currently, production is concentrated at the Legaria site, in Mexico City. Rabiela explained that the new plant will enable the bank to produce more banknotes but also to better manage risks. Indeed, in case of a natural disaster or system failure, the Banxico will be able to ensure business continuity in at least one of the two locations. The new factory should be inaugurated in 2018.

The latest Mexican pesos incorporate various security features and have an estimated lifetime of about 4 years before being replaced. Because they are the most frequently used, the 20 and 40 pesos are made of polymer – an extremely resistant material used by the bank since 2000. The rest of the series is made of traditional cotton paper, but the 100 and 200 notes might be varnished to ensure a greater durability.

Mexico is often on the cutting edge of innovation when it comes to cash. Indeed, it was the second country after Switzerland to integrate security threads – a sophisticated element that now protects almost every banknote of the world.

To read the original [Spanish] article, please click here.

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