Coin Demand in Mexico: from Peak to Trough, Lessons Learned and Challenges

The presentation will review the evolution of coin demand in Mexico, which grew at unprecedented rates between 2015 and 2017, exceeding the production capacity of the national mint and requiring the central bank to establish limits on the amounts of bank withdrawals. After almost three years of this restriction, the commercial banks’ demand finally dropped sharply, resulting in excess inventories at the central bank. The presentation will cover the current challenges arising from this situation.