Remittances to Mexico rose 41.5% in April, the highest rate in 17 years

Remittances to Mexico rose 41.5% in April, the highest year-on-year rate in 17 years, the Bank of Mexico (Banxico) reported on Tuesday.

With this rise, this indicator reached 4,084 million dollars.

Thus, the accumulated balance of remittances in 2021 is 14,671 million dollars, this is an increase of 15.5% year-on-year.

Regarding income from remittances, given its relevance for many households, it is important that in the country there are reliable, simple, safe and inexpensive alternatives for currency exchange.

In general, according to the Bank of Mexico (Banxico), there is a wide coverage of financial services to carry out these operations, although there are areas of opportunity to expand financial services in some localities that receive cash remittances and an influx of international tourism.

Given this, Banxico, together with other competent authorities, announced a series of measures to reduce the costs and risks associated with cash transactions, and improve the exchange rate that migrants and their families receive when sending remittances.

Remittances to Mexico

The annual increase in the current account balance in 2020 was mainly the result of the expansion of the surplus of the non-oil trade balance, in a context of a relatively more dynamic recovery of manufacturing exports relative to imports, as well as of a lower deficit in the oil balance and the dynamism shown by income from remittances to Mexico, which are at historically high levels.

This was partially offset by the lower income from travel that has been reported since the start of the health emergency.