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UPDATE 1-Mexico's remittances rise to all-time high in July

reuters.com · 09/01/2021 14:52
UPDATE 1-Mexico's remittances rise to all-time high in July

Adds economist's comments

- Remittances to Mexico jumped to a record high in July, as cash sent from abroad reached $4.540 billion in the month, Mexican central bank data showed on Wednesday.

By comparison, remittances to Mexico were $4.458 billion in June and $3.532 billion in July 2020.

Mexicans abroad, mostly in the United States where the economy has benefited from stimulus measures, are sending more money to help family back home as President Andres Manuel Lopez Obrador struggles to deliver on promises to energize growth.

"Generous wage/income support fiscal transfers in the U.S., a competitive (peso/dollar) level, and a deep contraction of activity and employment in Mexico have acted as both push and pull drivers of dollar remittances from the U.S. to Mexico," Goldman Sachs economist Alberto Ramos said in a research note.

With Mexicans, especially those on the lower end of the socioeconomic ladder, depending heavily on remittances amid an ailing economy, the top five biggest months for remittances have all come in 2021.

Ramos forecast that moderating activity and income growth in the United States should lead to a moderation in remittances flows to Mexico in the coming quarters.

(Reporting by Anthony Esposito; editing by Jonathan Oatis)

((anthony.esposito@tr.com; +5255 5282 7140;))