La Jornada – Remittances, the main source of foreign exchange for the first two months

Mexico City. With a value of $ 6,471 million during the first two months of 2021, public remittances began as the main source of foreign currency in the country, according to official data.

Data from the Bank of Mexico (BdeM) indicates that the money sent by Mexicans working in the United States during the first two months of the year exceeded $ 3,583 million in oil exports.

It was also higher than the $ 1,733 million international tourists spent in various Mexican destinations.

The trend shows that in the past year the inflow of remittances has increased, while in contrast, derived from the Covid-19 pandemic, tourist arrivals and oil sales have decreased.

According to the Central Bank of Bahrain, the flow of remittances in the first two months of 2021 recorded an increase of 20 percent compared to 5,000 dollars, 352 million dollars in the same period in 2020.

In contrast, Mexican oil exports in the first two months of this year showed a 7 percent decline compared to the $ 3,853 million reported a year earlier.

In terms of tourism, the economic loss for travelers in the first quarter of 2021 represents a 62 percent decrease compared to the same period last year, when they left the country at $ 4,640 million.

According to the Remittances Forum of the Center for Latin American Monetary Studies, the strength of remittances at the start of the year was due to continued progress in reviving the employment of Mexicans in the United States.

The agency explained that the pace of economic activity in the United States led to new developments in the employment of Mexican migrant workers, thus mitigating the sharp decline recorded as a result of the Covid-19 epidemic.

Given this scenario, President Andres Manuel Lopez Obrador recently announced that he expects remittances to grow by 15 percent during the first quarter of 2021.

At the start of the year, money transfers by Mexicans working in the United States contrast with those of oil exports and tourism, the sectors that have been severely affected by the passage of the epidemic and are still suffering from the same woes.

In the case of sales of Mexican crude oil to other countries, these are still affected by high supply and reduced demand, since a year after the epidemic there are still restrictions on movement in many countries.

Tourism is one of the sectors most affected and affects Mexico in particular as it is one of the major tourist destinations in the world. In the first two months, according to the BdeM, 3.5 million passengers arrived, 53 percent less than the 7.5 million in the same month in 2020.

According to Deloitte, before the pandemic, tourism was set to exceed remittances as the main source of foreign exchange, given that, in their view, shipments from citizens would grow at a rate of 1.3 percent annually, while the flow of tourists would increase 10 percent annually.

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