Remittances to Mexico add 13 straight months to the upside

Total dollars received in May totaled $4,514 million (MDd), a 31% increase over the same month in 2020, according to a monthly report from Banco de México (Banxico).

The number of transactions – mainly from the US – increased by 14.5% at an annual rate, while the average amount per transaction grew by 14.4%.

In cumulative numbers, remittances increased 21.7% annually between January and May, to reach $19.178 million, Bancico said.

Gabriella Seiler, director of economic and financial analysis at Banco Base, said the cumulative remittances in the past 12 months amounted to $44.026 million, an all-time high and a 13-month buildup of consecutive increases.

Analysts highlighted that the fiscal stimulus granted in the United States contributed to the growth of remittances to Mexico, which is why growth is expected during the year.

In 2020, Mexico received a record $40607 million in remittances, an 11% increase over what it received in 2019.

Banks operating in Mexico are a mechanism that enables Mexicans living abroad to make money transfers in dollars to their relatives through debit cards.

Companies like BanCoppel have also set records for sending remittances. In 2019, the growth was 19%, and he said they are working so that remittances can be collected soon on the app and in the ATM network.

With information from Reuters