Cash demand soars during pandemic in Mexico

Between December 31, 2019 and April 30, 2020, Mexico saw an unprecedented spike in cash demand. The central bank credited this to the public taking precautions in light of the pandemic.

Cash has always been king in Mexico, where 90% of consumer transactions are conducted in cash "normal times", but, in times of corona, cash demand has never been higher. Once more, the notably important role of cash during a crisis contradicts fakenews about coronavirus fears "speeding up the death of cash".

From Banxico

“El crecimiento de la base monetaria se ha incrementado en las últimas semanas, debido tanto a factores asociados a las medidas sanitarias implementadas en el país, que habrían aumentado la demanda de efectivo por parte del público como medio de pago, como por algunos efectos estacionales, en este caso el asociado al viernes feriado del 1 de mayo”, explicó el Banco de México.

"The amount of banknotes and coins in circulation increased 5%, representing the first increase since 1989."

"Cristian TéllezoEl Financiero (May 4, 2020)

Translation

"The growth of the monetary base has increased in recent weeks, due both to factors associated with the sanitary measures implemented in the country, which would have increased the demand for cash by the public as a means of payment, and due to some seasonal effects , in this case the one associated with the Friday holiday of May 1 ” Explained the central bank of Mexico