Introduction to the Retirement Process
The Bank of Mexico (Banxico) has initiated the process of phasing out the 20 peso banknote, known for its blue color and featuring Benito Juarez’s image, which has been in circulation since August 20, 2007.
The decision was formalized in a publication in the Federal Official Gazette (DOF) on October 10, 2025. Financial institutions are required to cease distribution of these bills to the public starting from the same date.
Gradual Retirement and Continued Validity
Although the withdrawal is gradual, the banknote retains its “liberating power,” meaning it remains a valid means of payment and can be used in everyday transactions while still in circulation.
However, once these bills reach bank branches, they will be separated from the rest, labeled as “in the process of being retired,” and sent to Banxico for destruction.
Reasons for Retirement
The primary reason is Banxico’s strategy to modernize the Mexican monetary system. The bank aims to replace lower-denomination paper money with more durable, cost-effective, and secure alternatives, such as coins or updated banknotes.
20 Peso Banknote
In this case, the blue 20 peso banknote will be replaced primarily by the commemorative 20 peso coin and the increasing use of banknotes from family G in other denominations.
If you still possess the type F 20 peso banknote, there’s no need to worry, as it maintains its value and can be used for payments or deposited in the bank. The “retirement process” only implies that, upon reaching a bank, it will be permanently removed from circulation.
Key Questions and Answers
- What is being retired? The Bank of Mexico (Banxico) is gradually phasing out the 20 peso banknote, known for its blue color and featuring Benito Juarez’s image.
- When will the retirement process begin? Financial institutions are required to cease distribution of these bills to the public starting October 10, 2025.
- Will the banknotes still be valid during the retirement process? Yes, the banknotes will remain a valid means of payment and can be used in everyday transactions until they are deposited at a bank.
- Why is Banxico phasing out these banknotes? The primary reason is to modernize the Mexican monetary system by replacing lower-denomination paper money with more durable, cost-effective, and secure alternatives.
- What will replace the 20 peso banknote? The blue 20 peso banknote will be replaced primarily by the commemorative 20 peso coin and the increasing use of banknotes from family G in other denominations.
