Remittances sent to Mexico rose 16.39% in January-July 2022

Mexico City, September 1 (EFE). – The Mexican economy received $32812.47 million from its citizens abroad during the first seven months of the year, an increase of 16.39% compared to 28,192, $23 million over the same period in 2021., the Bank of Mexico (Banxico) said Thursday.

With this result, the total remittances from Mexican citizens to their countries of origin totaled 27 months with continuous increases at the annual rate.

Additionally, between January and July 2022, individual transfers averaged $389, which is higher than the $371 Mexican families received during the same period in 2021.

The number of transactions increased from 75.96 million to 84.26 million in the same comparison period, mostly electronic transfers.

Remittances in July alone amounted to $5,296.79 million, up 16.5% from $4,545.05 million in the seventh month of 2021.

It also received about $153 million more than last June, or a positive difference of about 3%.

The significant increase in remittances continues the upward trend observed since May 2020, while in March of the same year, at the beginning of the epidemic, the figure of $4,000 million received from abroad was exceeded for the first time.

The importance of remittances

Mexico added a total of $51,585.7 million in remittances by the end of 2021, a record 27% increase compared to 2020, when it reached $40,605 million.

In the midst of the pandemic, the volume of remittances in 2020 represented an 11.4% increase compared to $36.438 million in 2019.

Mexico’s president, Andres Manuel Lopez Obrador, has on several occasions welcomed 38 million Mexicans to the United States for millions of dollars in entry into the Latin American country, even calling them “heroes.”

In Mexico, about 4.9 million families and about 11.1 million adults receive remittances from their relatives abroad, according to a report by the Center for Monetary Studies of Latin America (Cemla).

This money, which comes mainly from Mexican immigrants living in the United States, represents Mexico’s second source of foreign exchange, after auto exports, and represents more income from the Mexican agricultural sector, which contributes 3% of GDP. (GDP) Mexico.

For this reason, Mexico’s government is confident that remittances will help lift the country’s economy, which contracted 8.2% in 2020 and rebounded only 4.8% in 2021.

In 1995, the first year that the Bank of Mexico provided results, remittances amounted to $3.672 million. EFE

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