After big decline in April, remittances surge 18% in May

Mexicans working abroad sent US $3.8 billion back home during the month of May, representing a rebound of some 18.10% in remittances over the month of April, the central bank reported on Wednesday. The total is also 2.9% higher than in May 2019.

May’s average remittance was $319, lower than April’s $329 average, but 10,590 more remittances were made, resulting in the higher total.

The increase in the number of remittances, one of Mexico’s most important sources of foreign income, may also be related to the Mother’s Day holiday. Banking officials say that over the last 20 years, May traditionally sees almost 14% higher totals than other months of the year, as some people only send money home on that day.

According to the Center for Latin American Monetary Studies (CEMLA), there was also a slight improvement in the employment situation of Mexican workers in the United States in May after the suspension of economic activity in March and April due to the coronavirus pandemic and corresponding economic shutdown.  

CEMLA estimates that 5.7 million Mexicans were employed in the United States in May, down from 7.36 million in May 2019.

In March, Mexicans working abroad sent a record-setting $4.02 billion back home, and although April 2020 numbers represented a decline of 28.5% over the previous month, the largest monthly decline since November 2008, total April remittances were roughly equal to those of the same month in 2019. 

So far this year Mexicans working abroad — mostly in the U.S. — have sent home $15.53 billion which helps support the basic needs of an estimated 10 million people, 10.4% more than during the same time period last year.

Source: Milenio (sp), Expansión (sp), Forbes (sp)

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