Report: Mexicans Sent Home $3.27 Billion in Remittances — Mostly from the U.S.

Customers are seen inside a business offering money transfers and loans, in Mexico City, Tuesday, April 5, 2016. U.S. Republican Presidential frontrunner Donald Trump is threatening to block billions of dollars in U.S. remittances to force Mexico to pay for his proposed border wall. (AP Photo/Rebecca Blackwell)
AP Photo/Rebecca Blackwell

Mexicans living abroad, primarily those working in the United States, are adding billions of dollars to the Mexican economy, and this year marks the second-highest amount since Mexico’s central back starting keeping records 24 years ago.

Mexico Daily News reported that in July Mexicans sent home $3.27 billion — 14.4 percent higher than they sent in July of 2018. The number of transactions was up by 9.1 percent and the average amount of a transaction was up five percent to $340.

“Goldman Sachs analyst Alberto Ramos said he expects the growth in cash sent back to continue,” Mexico Daily News reported.

“We hope that the growth in remittances stabilizes between four percent and six percent,” Ramos 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.”

Mexico Daily News also reported on the cash surplus remittances have created:

In the second quarter of 2019, Mexico achieved a current account surplus of U.S. $5.143 billion, the largest since Banxico began keeping records in 1980. Remittances totaling U.S. $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 U.S. $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,” Obrador 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,” Obrador said.

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