Cash Remittances to Mexico Set $26B Record in 2017, Says Central Bank
1/2/2018
Individuals outside of Mexico who sent money home in 2017 broke all prior records with more than $26.1 billion in 11 months.
The latest figures from Mexico’s Central Bank (Banxico) show 2017 being a record-breaking year for receiving remittances by Mexicans abroad. From January to November 2017, Mexicans sent $26,167,00,000, the highest figure to date. In 2016, another record-setting year, Mexicans sent $24.1 billion. Banxico reports that 97 percent of the funds sent to Mexico came through wire transfers. Mexico’s second largest source of income was the export of oil for $18.5 billion in the first 10 months of 2017.
According to CNN Money, the broken records reflected a weakening of the peso and an alleged threat by the Trump Administration to tax remittances.
The remittance issue comes at a time when debates continue about how the government will fund the $21.6 billion wall and fence project expected to enhance southwestern border security measures.
Taxing cash remittances and renegotiating the North America Free Trade Agreement (NAFTA) has led to tension between U.S. and Mexican officials. As of December, the peso exchange rate fluctuated around $19.6 pesos per $1 USD.
Harold
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