Mexico | Bonanza: Exchange rate boosts 17% real growth in remittances in August

Summary

Large fluctuations in the USD/MXN exchange rate impact Mexican migrants' decisions on the amount to remit. In August, the peso depreciated 5.4%, which boosted a 9.3% growth in remittances to Mexico in dollars and an increase converted into pesos of 17.0% in real terms.

Key points

• Key points:
• Remittances to Mexico exceed the threshold of 6 billion dollars in a single month for the second time. In August, 6,087 million dollars entered Mexico in the form of family remittances.
• Large fluctuations in the exchange rate of the Mexican peso (MXN) against the US dollar (USD) impact Mexican migrants' decisions on the amount to remit. In August, the peso depreciated 5.4%, which boosted a 9.3% growth in remittances to Mexico in dollars and a 17.0% increase in pesos in real terms.
• Financial education can have a great impact on households receiving remittances to improve their financial health: 59.2% of people aged 18 or older responded that they have little or no confidence in their ability to manage their money on a daily basis.
• Households receiving remittances have a lower level of financial control, resilience and security. Only 28.6% of households receiving remittances can fully or very well cope with a major unforeseen expense, vs. 33.9% in households that do not receive remittances.
• The new administration of President Claudia Sheinbaum recognizes the important contribution of Mexican migrants to our country. Efforts must continue to improve opportunities and economic integration in regions that expel migrants: education and financial inclusion are key to triggering productive projects in these communities.

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