Banknotes in Mexico have a life cycleYes, just as you read it, since the Bank of Mexico (Banxico) ensures that at any given time they are examined to determine if they are suitable or not to continue circulating, according to their same criteria.
For this, Banxico measures the perception that the population has about the quality of the banknote. Added to this, it enables commercial banks to classify banknotes as fit for circulation or damaged.
“Damaged banknotes are withdrawn from circulation for subsequent destruction. Two-thirds of the production of the banknote factory is to replace the destroyed banknote. The average duration of the banknotes depends on their physical characteristics, use, and weather conditions. In recent years, the average life of Mexican bills has increased,” according to the National Commission for the Protection and Defense of Users of Financial Services (Condusef).
Other reasons for its renewal
The families of banknotes are constantly renewed to maintain their security and thus make it difficult to counterfeit them.
In addition to this, they also seek to satisfy the needs of users on a continuous basis, managing to increase the durability of those in circulation.
And to combat counterfeiting, Banxico has a strategy based on the following actions:
- Incorporate security elements that are easy to authenticate and difficult to imitate into the banknotes.
- Disseminate these elements among the user public (campaigns, media, courses, visits).
- Train cash intensive users.
- Ensure the quality of banknotes in circulation to facilitate their authentication.
- Establish mechanisms to remove counterfeit banknotes and coins from circulation.
- Penalize the crime. Making or circulating counterfeit bills or coins is a federal felony (5 to 12 years in prison).
- Cooperate with the Attorney General of the Republic and the Secretariat of Security and Citizen Protection-Federal Police for the prevention and prosecution of crime (training, information exchange).
- Exchange information with other central banks and companies.
- Authentication can be done through the process of touching, looking at and turning the note, with auxiliary elements such as a magnifying glass or black light.
Read more:
Banxico will increase spending to manufacture banknotes and coins in 2023
They ask for $420,000 pesos per $20-peso bill with special detail
#Mexico #Banxico #constantly #change #banknotes