July remittances at second highest level in 24 years

September 2, 2019

us dollars and mexican pesos — Total remittances to Mexico hit US $41.46 billion from January to August this year. (Archive)

Remittances by Mexicans working abroad reached their second-highest monthly level in July since Mexico’s central bank (Banxico) started keeping records 24 years ago.

They sent home US $3.27 billion, 14.4% more than in July 2018. The number of transactions was 9.1% higher, while the average amount per transaction was up 5% to US $340.

Goldman Sachs analyst Alberto Ramos said he expects the growth in cash sent back to continue.

“We hope that the growth in remittances stabilizes between 4% and 6%,” he said. “The solid flow of remittances from workers has been good for the current account balance and for supporting private consumption, especially for low-income families.”

In the second quarter of 2019, Mexico achieved a current account surplus of US $5.143 billion, the largest since Banxico began keeping records in 1980. Remittances totaling US $9.403 billion were an important contributing factor for the surplus.

In his morning press conference on Monday, President López Obrador said that total remittances in 2019 could rise as high as US $35 billion, calling the money sent home by emigrants “a blessing” for the Mexican economy. However, he noted that emigration should be a choice and not an obligation.

“The support from migrants is very important, and that’s why we need to help them; they are living heroes,” he said. “What are we going to do? Despite the importance that remittances have, the most important thing is that Mexicans shouldn’t be obligated to emigrate. Those who leave the country should do it out of choice, not necessity.”