Remittances to Mexico surge to historic high in October

  • 12/1/2021
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MEXICO CITY, Dec 1 (Reuters) - Remittances to Mexico climbed to a new record high of $4.819 billion in October, the eighth straight month the figure for cash sent from abroad has remained above $4 billion, Mexican central bank data showed on Wednesday. By comparison, remittances to Mexico were $4.409 billion in September and $3.602 billion in October 2020. Mexicans abroad, mostly in the United States where economic growth has benefited from stimulus measures, are sending more money to help relatives at home as Mexican President Andres Manuel Lopez Obrador struggles to deliver on promises to energize the domestic economy. "Generous wage/income support fiscal transfers in the U.S., a competitive MXN/USD 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. Ramos forecast that the moderating economic activity and income growth profile of the United States should lead to an easing in remittance flows to Mexico in the coming quarters.

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