The Chamber of Deputies received a few days ago two initiatives of the federal Executive what are they looking for modify the characteristics of the twenty and ten peso coinswith the aim of encouraging its circulation, reducing production costs and modernizing its materials.
The projects, handed over to commissions, take up studies from the Bank of Mexico that point to an increasingly visible phenomenon, which is that twenty peso coins almost do not circulate because the population tends to keep them as collector’s items, which limits their daily function as cash.
Why change 20 peso coins?
According to the initiative, until 57 percent of people acknowledged that they keep the newly designed twenty peso coins, either because they are considered representative or useful for saving, which prevents them from returning to the monetary flow
He Bank of Mexico It also documented that 79 percent of the population perceives these coins as “not so common” and that, in many cases, “they do not reach them” because those who receive them prefer to keep them.
The initiative has three main objectives:
1. Encourage its daily use
The document details that, since 2013, Banxico observes that the public rarely uses this denomination for daily transactions. Therefore, it proposes to standardize the design and physical characteristics of twenty peso coins to facilitate their recognition and authentication.
2. Modify the metallic composition
It is suggested to adopt cheaper materials, similar to those used in the commemorative coins minted since 2019, which combine bronze-aluminum and silver nickel silver in the center. This transition would reduce costs and allow new parts to be processed more efficiently on automated checkout and sorting equipment.
3. Unify a generic thematic motif
The proposal contemplates that the permanent design represents the Kukulkan Temple in Chichén Itzá, a symbol recognized nationally and internationally, and that it incorporates security elements such as a latent image on the reverse.
Banxico’s analysis indicates that the dodecagonal shape, which is the most common among recent commemorative coins, is better accepted among the population, easier to manipulate and more inclusive for people with visual disabilities. 88 percent of people participating in 2022 studies preferred this format
During a transition period, the current twenty peso coins will continue in circulation until the Bank of Mexico determines their withdrawal.
What happens to the 10 peso coin?
The second initiative received in San Lázaro proposes to change the alloy of the metal core of the ten peso coin, currently made with silver nickel silver, in order to reduce manufacturing costs and improve the efficiency of the production process.
What new material could be used?
The Executive suggests replacing the current alloy with nickel-coated steel, a material that offers:
- Lower production cost.
- Durability and greater resistance to wear, according to tests carried out by the Mint and UNAM.
- Compatibility with automated payment machines and coin sorters.
Evaluations included accelerated deterioration studies, exposure to humid and saline environments, strength testing, and authentication on high-speed equipment. In all cases, the results showed that nickel-coated steel is a viable and resistant alternative, without affecting the expected behavior of the currency in circulation.
Will the design change?
No. The name, shape and general design are maintained. The adjustment is limited to the composition of the materials used in the central part of the coin.
The proposal also details the precise composition of the new material, as well as the tolerated weights to ensure standardization between pieces.
Why propose this change now?
Both initiatives respond to different but complementary needs:
- Reintegrate the twenty peso coins into the monetary flow, which have involuntarily become collector’s items.
- Reduce costs and modernize the manufacturing of ten peso coins, a process that directly impacts the State’s operating expenses.
- In addition, the reforms would improve accessibility conditions for people with visual disabilities, standardize features to reduce confusion, and update security elements.
When could the changes come into effect?
The initiatives are in the legislative process. If approved, both provide for a period of coexistence between the current models and the new ones. The withdrawal of the previous currencies would be under the responsibility of the Bank of Mexico.
For now, ten and twenty peso coins continue to be legal tender and have full value, so citizens can use them without restrictions.
