Chile Updates Coin Compositions

The Central Bank of Chile (CBC) has unveiled redesigned 10 peso and 50 peso coins, with the former scheduled to enter circulation in October 2026 followed by the latter in January 2027. Both will continue to circulate alongside existing issues, with no exchange programme required. Current coins will remain legal tender indefinitely.

At the heart of the redesign is the adoption of electroplated steel technology, a production method already widely used in numerous countries. Under this process, a steel core is coated with metallic layers using electricity, significantly reducing reliance on more expensive and volatile non-ferrous metals such as copper and nickel.

The new coins retain the existing designs featuring national hero Bernardo O’Higgins on the obverse and their respective denominations on the reverse. However, the measurements of both coins have been modified to reduce manufacturing costs. The 50 peso coin will keep its current diameter but will be lighter, with its weight reduced from 7g to 6.5g. The 10 peso coin will see a more noticeable change, with its diameter reduced from 21mm to 18.7mm and a new smooth edge to aid identification.

The move reflects a broader trend within global circulating coinage, as central banks and mints seek ways to mitigate rising raw material costs while maintaining the functionality and public acceptance of circulating currency. Copper and nickel prices have become increasingly volatile, prompting the CBC to explore alternative materials and making alternative production methods more attractive from both an economic and operational perspective.

Chile introduced the concept of steel for coins in 2017 through legislation defining permissible coinage materials, paving the way for these latest coin updates. Since then, CBC has reportedly spent years evaluating potential technologies and production techniques used internationally.

With the advent of the new steel core, the coins can now react and be subject to magnetic pull. However the older coins, which do not react to magnets, will remain valid indefinitely until further notice.

No plans to amend denomination mix

CBC General Manager Luis Óscar Herrera stressed that this initiative is part of the permanent work carried out by the central bank to ensure that the cash used daily remains available throughout the country efficiently.

No plans to amend the denomination mix have been announced, with the new coins set to be ‘added to the existing circulation and will be gradually incorporated along with the currencies we know today’, said Treasury Manager Cecilia Feliú.

Chile ceased production of its 1 peso and 5 peso coins nearly a decade ago, due to the cost of minting and respective cash management exceeding their face value. Issuance was also halted in November 2017. Their withdrawal was accompanied by the introduction of a cash rounding system, under which cash transactions are rounded to the nearest 10 pesos while electronic payments continue to be processed to the exact amount. The coins remain legal tender, with commercial banks expected to accept both denominations from customers as long as they are exchanged in multiples of 10.

The 10 peso coin remains particularly important for transactions, with monthly demand reaching 20-25 million pieces, largely due to its role in providing change for cash payments. Demand for the 50 peso coin is lower but still significant, averaging 3-5 million coins per month.

Although there has been a decline in recent years, cash remains the preferred and most common means of payment in Chile despite the continued growth of electronic payments, accounting for approximately 64% of total transactions.