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

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

MEXICO CITY (Reuters) – Remittances despatched to Mexico, a serious assist for the nation’s financial system and low-income households, rose to their highest-ever degree for the month of February since data 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 12 months.

Money despatched again to members of the family this previous January was barely larger, at $3.298 billion.

Remittances have been on a file run since final 12 months and reached their all-time month-to-month excessive in March 2020, as a rising variety of Mexican migrants residing in the US dug deep to ship extra cash to kinfolk again house to alleviate the devastating influence of the coronavirus pandemic.

“Stable employees’ 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 devour and are the overwhelming recipients,” mentioned Goldman Sachs (NYSE:) economist Alberto Ramos in a analysis notice on Monday.

Most of Mexico’s remittances are despatched by the thousands and thousands of Mexicans residing in the US and are a pillar of assist for Latin America’s second-largest financial system, which suffered its steepest contraction in 2020 for the reason that Nice Melancholy of the Nineteen Thirties.

Remittances despatched to Mexico totaled $40.61 billion final 12 months. For January and February 2021, Mexico acquired a complete of $6.47 billion in remittances, up from $5.35 billion the primary two months of final 12 months.

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

“Beneficiant wage/revenue assist fiscal transfers within the U.S., a really aggressive degree, 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 mentioned.

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