Wednesday, November 29, 2023

First-quarter remittances by Mexicans working abroad hit record US $12.5 billion

Remittances sent to Mexico increased 18% to US $12.52 billion in the first quarter of 2022, a figure that represents a new record for the first three months of a year.

Reported by the Bank of México (Banxico) on Monday, the figure is $1.91 billion higher than in the first quarter of 2021 and comes after a new calendar year record of over $51 billion in remittances was sent to Mexico last year.

The vast majority come from the United States, where millions of Mexicans live and work.

The central bank reported that remittances totaled $4.68 billion in March, a 12.6% increase compared to the same month of 2021, and that remittances totaled $53.49 billion in the 12-month period to the end of March.

During the first three months of the year, 99% of all funds were sent via electronic transfer, Banxico said. Cash and payments in kind accounted for 0.7% of the $12.52 billion total while the other 0.3% was sent via money order.

The bank also reported a seasonally adjusted figure for remittances in the first quarter. The figure derived from that statistical method was a first quarter record of $13.91 billion, an 18.5% increase compared to the first three months of 2021.

In March, remittances were sent to Mexico in a total of 11.9 million transactions. An average of $393 was transferred in each one, a 6% increase compared to the same month of 2021.

Banxico also reported that remittances totaling $271 million were sent abroad from Mexico in the first three months of the year, an increase of 26.6% compared to the first quarter of 2021. Just over $1.1 billion in remittances left the country in the 12 months to March 31.

New records for incoming remittances were set in both 2020 and 2021 despite the negative impact the coronavirus pandemic had on the global economy.

The United States government’s extensive support for the U.S. economy during the pandemic was cited by many analysts as the main reason for the record remittance levels.

Mexico News Daily 

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