The collection of remittances from Mexico totaled 19,075 million dollars in the first half of 2020, which represented a 10.6% year-on-year rise and a record, Banxico reported.
Remittances are the sending of money from those who live in another nation to their country of origin. For example, money transfers made by Mexicans living in the United States and Canada to their families living in Mexico.
In particular, also the capture of remittances from Mexico meant a historical maximum for a month of June, and was the second highest monthly amount, surpassed by March of the current year, when they totaled 4,007 million dollars.
Specifically in June, the figure was made up of $ 3,501 million of wire transfers; $ 22.7 million in cash and kind, and $ 12.9 million in Money Orders.
Various studies show that remittances alleviate poverty in low- and middle-income countries, improve nutritional outcomes, are associated with higher spending on education, and reduce child labor in disadvantaged households.
A drop in remittances affects families’ ability to spend in these areas, since they must spend a larger proportion of their funds to address food shortages and immediate subsistence needs.
The National Commission for the Protection and Defense of Users of Financial Services (Conducef) of Mexico makes the following recommendations to those who send remittances:
- Verify that the institution through which you will send your money to Mexico, is duly established.
- Choose a nearby institution or your place of work or home.
- Before sending or withdrawing money, compare costs and commissions.
- Consider the exchange rate that suits you best.
- Take into account that hiring express services can be more expensive.
- It is important to assess what alternatives you have to send your money to Mexico, since the amount you will receive your family member or beneficiary will depend on the option you choose, so take into account: