The Executive branch has sent two initiatives to the Chamber of Deputies to modify the Monetary Law. The proposals seek to reduce production costs and renew the designs of 10 and 20 peso coins.
The reform proposes replacing the traditional alloy of copper, nickel, and zinc with a steel core coated in nickel.
The objective is to reduce minting costs without modifying the shape, diameter, weight, or graphic elements of the coins.
The measure responds to the global increase in metal prices that has made producing currency more expensive.
How the New 20 Peso Coin Would Look
In the case of the 20 peso coin, the initiative seeks to establish a permanent design to replace the variety of commemorative editions.
The center of the design would be dedicated to the Temple of Kukulkan at Chichen Itza, with the intention of creating a symbol easily identifiable in circulation.
The proposal also aims for the coin to stop being hoarded as a collector’s item and to be used more frequently in daily payments.
Objectives and Expected Benefits
The change in materials would allow for a decrease in the operational costs of the Bank of Mexico.
Furthermore, the initiative seeks to improve the distribution, recognition, and durability of the pieces while maintaining their value and security features.
The modifications also aim to facilitate the use of coins in small transactions, where demand for cash persists.
What Comes Next in the Legislative Process
The initiatives were referred to the Finance Committee in San Lazaro for analysis.
If approved, the modifications would be applied to new emissions without withdrawing current coins from circulation.
The government estimates that the process will allow for a gradual and orderly transition.
Evolution of Metallic Currency
In recent years, several coins of lower denomination have already adopted more economical alloys, such as coated steel, to reduce their production costs.
The new proposals form part of a broader process of modernizing metallic currency in Mexico.
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