Record of remittances sent to Mexico
Mexico reached a record remittances milestone in May, receiving $4.5 billion from citizens living abroad, according to the Bank of Mexico. This amount is 21.7% higher than the same month in 2020.
📈 Remittances Continue to Grow
Since March 2020, when monthly remittances first surpassed $4 billion, the upward trend has continued. In 2021, only January and February fell below that mark—typically lower months. However, March, April, and May each set new records, with May peaking due to Mother’s Day.
During the first five months of 2021, remittances totaled $19.2 billion, compared to $15.8 billion in the same period of 2020. If this pace continues, Mexico could exceed $45 billion in total remittances by the end of the year.
💸 A Key Source of Foreign Income
Remittances now generate more foreign revenue than oil and tourism, second only to manufacturing exports. In 2020 alone, migrants sent $40.6 billion, a figure equal to the combined budgets of Mexico’s education, health, welfare, and culture ministries.
🇺🇸 The U.S. Leads in Remittance Origin
Approximately 98.5% of Mexico’s remittances come from the United States. Most funds are sent through bank transfers, with just 0.7% entering the country in cash. Despite proposals requiring Mexico’s central bank to buy all incoming U.S. cash dollars, cash-based remittances remain minimal.
According to BBVA, strong economic recovery in the U.S. and labor shortages in key industries have helped Mexican migrants send more money home. These conditions have fueled the continued rise and helped set this record in remittances.
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