The lowest denomination of Mexican currency is the diez-centavos coin, a very small silver coin that is rarely used. But for the Bank of México (Banxico) it’s a costly coin to make. Rising costs have pushed up the price of minting a single one of the coins to 19 centavos.
That’s up from nine centavos in 2012. The central bank’s production costs have risen 40%, even after opting for cheaper minting processes.
During the first six months of the year, nearly 4.6 million pesos ($246,000 US) was spent minting 24.1 million 10-centavo coins, while 100 million pesos has been spent making them since 2014.
Miguel Ibarra, a financial studies expert at the National Autonomous University (UNAM), explained that coin production costs depend on factors such as metal prices, production of the coin dies, distribution and salaries. The cost of low-denomination coins has led many countries to phase them out, he said.
But if Banxico were to stop producing the 10-centavo coins, prices would instantly rise due to rounding up: if something has a price of 10.60 pesos but there are no 10 or 20-centavo coins, the price would automatically be rounded up to 11 pesos, he said.
Less expensive to produce are 20-centavo coins, which now cost 16 centavos, and the 50-centavo denomination, whose cost is 16 centavos.
Comments
more recommended stories
Protesters show up at informative public meeting regarding the Maya Train Project in MéridaOn Friday, May 13th, civil groups,.
Renán Barrera seeks to attract projects from countries members of the European Community“The best way to promote economic.
Homicides and extortions unstoppable in Acapulco, MexicoWith information from Alina Navarrete Fernández/Correspondent / Latinus.
Tragedy in Tixpéhual, Yucatan; once again a young man takes his own life in this townOn Wednesday, May 11th, a 24-year-old.
Yucatan is present at the Binational Summit of Prosecutors in the United StatesThe flow of illicit merchandise, human.
Moisés Poot Tun is the pride of Hunucmá!Shoes, bags, key rings, belts, earrings,.
Yucatecan mother demands her son to be transferred due to constant school bullyingMother denounces bullying in Kinchil elementary.
Yucatan prepares for the start of the hurricane seasonThe facilities of the Ninth Military.
Ladder found while cleaning the bottom of the famous Zací cenote in ValladolidThe famous Zací cenote in Valladolid,.
Progreso, Yucatan will have a floating water park in front of the International MalecónVery soon Progreso will have a.
Leave a Comment