Mexico to eliminate high denomination banknotes?


Due to the pandemic, the number of electronic transfers increased and the use of cash decreased

The decrease in the use of cash and less theft were some of the positive effects of Nordic countries that adopted measures such as the elimination of high-denomination banknotes.

During the presentation of the “Contactless Economy” report, the economist Carlos Serrano, head of BBVA Mexico, said that these countries have reduced the number of banknotes in circulation and considered that Mexico could begin to apply it by first eliminating those with the highest denomination, which they are generally used in acts of corruption.

Mexico could eliminate high-denomination banknotes. Photo: Reforma

“The potential is enormous. We can go from a balance that we have of 80% in cash payments to one the other way around, as occurs in the Nordic countries,” added the head of BBVA Mexico, who also pointed out that the pandemic caused it to increase the number of payments that are made digitally.

Between June and August of this year, the number of transfers that were made on a monthly basis through the Interbank Electronic Payment System (SPEI), increased to 62.7% compared to the same period of 2020. In contrast, cash withdrawals decreased by 21.4% between the months of April and August.

“ Reduce the use of cash, and this implies starting, at the outset, by reducing or eliminating high-denomination banknotes. A thousand peso bill, a 500, are copies that, let’s say, can be moved in large quantities, in small spaces. That allows for a greater money laundering operation. I believe that if we remove the thousand-peso bills, we would take an important step ” Santiago Nieto, head of the FIU

During his virtual meeting with deputies of the Citizen Movement Party, he made a differentiation about the way organized crime works and the schemes incorporated by the political class to hide the diversion of resources:

UIF pide eliminar billetes de 500 y mil; ve por qué - Uno TV

 It is much more complex to be controlling the cash. Remember that criminal groups have the cash and introduce it into the financial system by buying cars, jewelry, art, real estate. But the political corruption that is in the financial system is removed via front companies and begins to be distributed ” . Santiago Nieto, head of the FIU

In this sense, Nieto Castillo announced that he will collaborate to clarify the videos broadcast where the brother of President Andrés Manuel López Obrador and PAN members were involved.


Mexico Daily Post