New Banco de México measurement pushes remittances up by 5% in 2017 and 2018 and grew by 10.3% in July
Mexico was unveiled to have recorded a 10.3 percent boost in its remittances in July on a yearly basis, marking the 28th month growth in a row.
The Central Bank of Mexico (Banxico) showed in its monthly data the overall amount of remittances to have hit USD2.867 billion in July, compared to USD2.6 billion registered in 2017 during the same period.
Banxico data also found the total amount of remittances to have reached a total of USD19.111 billion during the first seven months of this year, posting an 11.4 percent increase.
Financial group Banorte stated "the growth in the North American labor market has not only translated into greater opportunities for Mexican migrants, but also in an increase in wages for these workers."
It further added "in this sense the possibility of sending larger remittances to their families has increased."
In July 2,866.5 million dollars (md) of remittances entered Mexico, growing at an annual rate of +10.3%, an amount very close to that forecast by BBVA Research (2,876 md) and that of market consensus (2,900 md)
With this figure, remittances have seen 28 consecutive months of growth since April 2016, during which average growth rates of 11.0% were reported. The favourable economic conditions and low unemployment rate in the U.S., plus the relatively high peso to dollar exchange rate of recent years, have been behind the rise in the sending of this resource despite that country's current hostile attitude towards migrants
In recent months the Banco de México (Bank of Mexico) has been retroactively adjusting how it measures these remittances to January 2017, which is why the annual average rose by 1,500 md in 2017 and 2018. With this adjustment, the growth of the remittances in 2017 went from 6.6% to 12.2%, with a total amount in that year of 30,291 md
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