Remittances stand at 42.168 million dollars, a new all-time high: Banxico

The Bank of Mexico (Banxico) revealed that the remittances sent by nationals residing abroad amounted to 42.168 million dollars (mdd) between January and October. The amount has already surpassed the record figure of $ 40.605 million received in all of 2020.

The central bank detailed that in the first 10 months of the year, the accumulated amount of income from remittances registered an annual increase of 25.6 percent.

The new all-time high is due to the environment of economic crisis caused by the Covid-19 pandemic, since relatives of Mexicans living in the United States send more substantial financial support, said Janneth Quiroz, Monex’s deputy director of economic analysis.

Only in October, more than 4.819 million dollars entered for the concept of remittances, this is an annual increase of 33.8% and the highest amount for any month since it has been registered. With the data published by Banxico, the eighth consecutive month of entries exceeding 4,000 million dollars is confirmed.

“Since March, they have been exceeding 4,000 million dollars (…) In the remainder of the year a positive trend could be seen, considering that the United States labor market has continued to improve and there are even indications that in November it was a A good month in that country, with which we would project that the rebound in remittances in November will be positive, ”Quiroz commented in an interview.

A BBVA report recognizes that the increase in remittances in Mexico this year is explained by a common denominator in many countries in the region: a significant flow of migrant population to the United States, which has had greater dynamism and one of the most dynamic recoveries. among developed countries receiving migrant populations.

The shipments of the US currency spin 18 consecutive months with annual growth rates, starting from May 2020, according to BBVA.

The Banxico explains that in October the income from remittances exhibited a monthly rise of 7.7 percent.

During the January-October period, 99.1% of total remittance income was through electronic transfers, standing at 41.762 million dollars. While remittances sent in cash constituted 0.5% of the total amount.

For the 10th month alone, 12.5 million transactions originated with an average shipment of $ 384. This represented a 12.5% ​​annual increase in the value shipped.

Heading for $ 52 billion

BBVA published a report where it estimates that the amount of remittances in Mexico will amount to 52.7 billion dollars in 2021. Only behind India (87 billion dollars) and China (53 billion dollars).

“Although remittances are dispersed throughout the world, there is a strong concentration of the monetary volume of these resources in few countries. It is estimated that the 10 countries with the highest income from remittances will concentrate 51% of the total of this flow in 2021, ”says BBVA.

Janneth Quiroz agreed that it is very likely to exceed the barrier of 50,000 million dollars, as long as the upward trend shown in the year continues.

In the same way, he recalled that the income from remittances is positive; however, it should not be seen as a government achievement.

“It is not a local merit, but it has undoubtedly benefited that consumption presents a recovery in the country, without a doubt if these support had not been sent from abroad, the recovery of local consumption would have been much more gradual,” he commented.

An analysis by Gabriela Siller, director of economic and financial analysis at Banco Base, explained that remittances cannot be considered an achievement of the Mexican economy.

“They are received as a consequence of the economic growth of another country, particularly the United States. It is even considered that the high growth of remittances is related to the slow growth of Mexico and the lack of job opportunities, “he said.

Yesterday, the president, Andrés Manuel López Obrador commented that this year remittances will reach a record figure of 50,000 million dollars and for this he thanked the migrants.

“The Bank of Mexico announced that remittances last October were 4.819 million dollars, 34% more than the same month last year, another historical record. Thank you with all my heart, “he commented from the Zócalo.

It is not unique to the country

The World Bank, through an analysis, maintains that with the economic recovery, remittances will increase by 6.5% during 2021 with an approximate amount of 751,000 million dollars.

While for 2022, the World Bank projects 774,000 million dollars in “migradollars”.

To put it in perspective, the global amounts of remittances are similar in size to the annual Gross Domestic Product of countries like Switzerland and Turkey.

The World Bank report highlights that Latin America and the Caribbean will show a growth in the reception of remittances much higher than the rest of the regions in the world. Growth in this region is estimated to be 21.6% this year.

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Reference-www.eleconomista.com.mx

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