Banxico asks Mexican ATMs to supply more lower denomination banknotes
Jun 30, 2017
Following the Financial Forum in L.A., California earlier this month, the Mexican national bank's spokespeople stated their intention to increase the ATM supply of lower denomination banknotes nationwide in light of recent research on the banknote requisites within marginalised communities.
According to the study, 20 and 50 peso banknotes are most in demand amongst more marginalised areas as well as industrial and commercial zones. The central bank is also pushing for all banks to update their ATMs so that they no longer dispense broken or counterfeit banknotes but instead retain the substandard notes.
Estimating that it will take approximately six to nine months to action this plan, the banks should be allowed time to reconfigure their ATM algorithms. Alegre adds that, contrary to popular belief, the use of cash keeps rising in Mexico, with the central bank estimating a continuing annual growth of 10% over the next 10 years.
"What we want, for the moment, is for there to be 50 peso notes available[...]. For years we have asked banks to ensure that one in 10 of their ATMs are dispensing small denomination notes, but we're not convinced this is the current situation."
Excerpt (translated)
'[Mexico locals] will surely have noticed that when they go to their local ATM to withdraw money, it is difficult to find one with 20 or 50 peso banknotes. Although all banks have an obligation to ensure their ATMs are dispensing low denomination bills nowadays, this doesn't seem to be the case.
'The Bank of Mexico (Banxico) will shortly be requesting banks operating in the country to increase the number of ATMs in which low denomination bills are dispensed, particularly in the more marginalised areas and where, according to studies, those types of banknotes are most required. [...]
'At the Financial Innovation Forum (9th June 2017 in Los Angeles) - organised by a leader in the ATM industry, NCR - the Banxico CEO of Currency Issuance, Alejandro Alegre stated that banks currently have an obligation to ensure that at least one in 10 of their ATMs are dispensing low denomination bills. The new goal for Banxico is to add another 2,700 ATMs to the existing number. [...]
'The CEO also revealed that, contrary to popular belief, cash use is still high in Mexico, the central bank even estimates that its use will continue to rise annually at 10% (as it has up to now) for the next 10 years.
'Alegre went further, adding that banks will also be asked to ensure that their multipurpose ATMs are dispensing cash that is suitable for circulation - that is to say, banknotes which are in good condition, unbroken, unscratched or false.'
Excerpt (original)
'Seguramente se ha dado cuenta de que cuando va al cajero automático a retirar dinero, es muy difícil que éste le dispense billetes de 20 o 50 pesos. Los bancos tienen hoy día la obligación de que en los ATM haya billetes de baja denominación, pero muy poco se ve este comportamiento.
'El Banco de México (Banxico) obligará en breve a los bancos que operan en el país, a que se aumente el número de cajeros automáticos en los que se entreguen billetes de baja denominación, sobre todo, en zonas más marginadas y donde, de acuerdo con estudios, se requiera ese tipo de billetes. [...]
'En el Foro de Innovación Financiera organizado por la empresa líder en cajeros automáticos, NCR, el directivo del Banxico precisó que los bancos tienen la obligación de que por lo menos uno de cada 10 cajeros dispense billetes de baja denominación. La intención que tiene el Banxico, es que a éstos se sumen otros 2,700 cajeros automáticos. [...]
'El directivo expuso que, contrario a lo que se cree, el uso de efectivo sigue en México al alza, e incluso la estimación del Banco Central es que siga con crecimientos anuales de 10% (como hasta ahora) durante los siguientes 10 años. [...]
'Alejandro Alegre adelantó que también se pedirá a los bancos que en sus cajeros multifuncionales, que los billetes que dispensen sean aptos para circular, es decir, que estén en buenas condiciones, sin rupturas, que no estén rayados y que no sean falsos.'
Source:
Juarez, Edgar. 20 June 2017. Perdiodico El Economista. 'El uso de efectivo crece a una tasa anual de 10%: Obligarán a bancos a que cajeros den billetes de menor denominación'. Nacer Global. Accessed 30 June 2017. Web.