New 2000 peso bill: why did they create it? The answer is simple: inflation and the decrease in the value of money.
In 2004, in Banco de México (Banxico) announced that it would issue a $ 1,000 pesos bill, the one with the highest value to date, but 14 years later, the same agency revealed its plans to start circulating another one worth $ 2,000 pesos.
Does this mean that Mexicans will earn more? The reality may be different: that Mexicans will need more money to buy the same thing they bought a couple of years ago with fewer zeros.
The truth is that a $ 1,000 pesos bill of 2018 is worth approximately 73% less than the value of one of 2004.
This phenomenon is called inflation and could explain why Banxico intends to start the circulation of a $ 2,000 pesos bill.
Each year, inflation rises 4.81%, according to data provided by the National Institute of Statistics and Geography (INEGI), which in turn, increases the value of the Basic Basket, which is made up of vegetables, fruits, oils, cereals and Proteins that the average Mexican consumes every day.
If in the Central of Supply of the City of Mexico the prices of the avocado, the lemon, the onion and the bag of two kilos of sugar stayed in 50, 18, 18 and 32 pesos in that order in 2018, in 2004, these Ingredients were sold 13.50, 4.68, 4.8 and 8.6 pesos, respectively.
This price increase or, more adequately, loss of the purchase value of Mexican money, could explain why in 2004 a $ 1,000 pesos bill was needed and fourteen years later, a $ 2,000 pesos bill is needed to meet them. needs
It is estimated that $ 1,000 pesos in 2018 are worth approximately $ 270 pesos in 2004, which means that one of the new $ 2,000 pesos bills proposed by Banxico, can barely buy what was paid with 540 pesos from 14 years ago.
The Mazatlan Post