Mexico City. During 2022, conversions will have broken a new record. And the Mexican agency BBVA stated that the receipt of these coins that citizens send to their families will reach 58 thousand and 400 million dollars, which means a new high at all.
Today, Monday, the Bank of Mexico (BdeM) announced that the country received 4 thousand 801 million dollars last November for the concept of family remittances, which represents an increase of 3 percent compared to the same month of 2021.
By the end of 2022, it is estimated that remittances to Mexico will reach a new historical limit with a maximum amount of more than 58 thousand 400 million dollars, which will represent an increase of 13.3 percent compared to what was received in 2021. In it, 51 thousand entered and $586 million, ”according to BBVA.
According to the bank, the monthly growth is the smallest increase recorded since March 2021, 20 months ago, as the average remittance rate between April 2021 and October 2022 was about 23 percent.
“In real terms, deducting inflation and adjusting for the exchange rate, remittances to households in Mexico shrank by 10.4 percent in November 2022. Throughout 2022, the Mexican peso has been one of the strongest currencies, appreciating about 7 percent against the dollar and this reduces The amount of pesos received from remittances in Mexico.”
However, he noted that conversions have managed to accumulate 31 consecutive months of growth, a streak that began in May 2020.
From January to November 2022, nearly 99 percent of all remittance income was generated through electronic transfers, amounting to $52,604 million.
On the other hand, remittances sent abroad by Mexican residents amounted to $102 million, which represents an annual increase of 9.5 percent.
With these results, in November 2022, the remittances account surplus of Mexico with the rest of the world was $4,699 million, higher than the $4,569 million observed in the same month of 2021.
With the seasonally adjusted series, in the penultimate month of 2022, income from remittances fell at a monthly rate of 3.9 percent, while outflows grew by 8.5 percent.
In this way, the surplus of the remittances account amounted to 4 thousand 810 million dollars in November 2022, which is less than the 5 thousand 019 million dollars that were presented last October.
BBVA noted that the low level of unemployment prevailing in the economy of the United States, the country where the vast majority of Mexican expatriates live, has boosted the sending of remittances, but by 2023, these remittances are expected to continue but at a faster, moderate rate, due to a possible scenario that could The global economy is slowing down.
BBVA has also determined that Mexico is consolidating as the second country receiving the most remittances and in 2022 will overtake China by more than $7 billion, which is in third place.
“The strong growth of remittances to Mexico during the first three years of the pandemic made it the second largest recipient of these resources in the world, displacing China since 2021,” he stated.
He explained that by the end of 2020, the rapid recovery of the US economy led to a significant increase in the demand for labor, and thus a relative scarcity of this productive factor, which benefited migrant workers and attracted a new wave of immigration from Latin American and Caribbean countries.
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