Mexico | Superpeso and inflation reduced remittances by 16.0% in real terms

Summary

Between July 2022 and July 2023, the Mexican peso (MXN) has appreciated 17.4% against the US dollar (USD), and inflation registered in Mexico was 4.8%. Thus, remittances in real terms have lost 16.0% of their purchasing power in one year.

Key points

• Key points:
• In July 2023, 5,651 million US dollars (md) entered Mexico as family remittances (+6.6% yearly). Thus, they maintain a streak of 39 consecutive months with increases, which began in May 2020.
• On an annualized basis, remittances accumulate a flow of 61.6 billion dollars in 12 months, the largest volume in its history, with a growth rate of 9.6%.
• The superpeso and inflation have reduced the purchasing power of households that receive remittances. Between July 2022 and July 2023, the Mexican peso (MXN) has appreciated 17.4% against the US dollar (USD), and inflation registered in Mexico was 4.8%. Thus, remittances in real terms have lost 16.0% of their purchasing power in one year.

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