Home Business Remittances to Mexican households rise to document excessive for February By Reuters

Remittances to Mexican households rise to document excessive for February By Reuters

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© Reuters. A girl counts U.S. banknotes at a cash alternate workplace in Ciudad Juarez, Mexico

MEXICO CITY (Reuters) – Remittances despatched to Mexico, a significant assist for the nation’s economic system and low-income households, rose to their highest-ever stage for the month of February since information started in 1995, central financial institution knowledge confirmed on Monday.

Remittances to Mexico in February totaled $3.174 billion, in comparison with $2.732 billion throughout the identical month final yr.

Money despatched again to relations this previous January was barely greater, at $3.298 billion.

Remittances have been on a document run since final yr and reached their all-time month-to-month excessive in March 2020, as a rising variety of Mexican migrants residing in the USA dug deep to ship extra cash to family again house to alleviate the devastating influence of the coronavirus pandemic.

“Stable staff’ remittance flows have been including assist to the present account and to non-public consumption, notably for low-income households, who’ve a excessive propensity to eat and are the overwhelming recipients,” stated Goldman Sachs (NYSE:) economist Alberto Ramos in a analysis observe on Monday.

Most of Mexico’s remittances are despatched by the tens of millions of Mexicans residing in the USA and are a pillar of assist for Latin America’s second-largest economic system, which suffered its steepest contraction in 2020 because the Nice Melancholy of the Nineteen Thirties.

Remittances despatched to Mexico totaled $40.61 billion final yr. For January and February 2021, Mexico obtained a complete of $6.47 billion in remittances, up from $5.35 billion the primary two months of final yr.

Remittance flows are anticipated to stay robust on the again of the $1.9 trillion U.S. fiscal stimulus bundle and strong financial progress in the USA.

“Beneficiant wage/earnings assist fiscal transfers within the U.S., a really aggressive stage, and a deep contraction of exercise and employment in Mexico have acted as each push and pull drivers of greenback remittances from the U.S. to Mexico,” Ramos stated.

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