Remittance sending and transfer transfer slowdown during January

During January, Mexicans who receive remittances captured 4.406 million dollars, reveals information from the Bank of Mexico.

The flow of transfers that reached households exceeded by 12.5% ​​the shipments made by displaced Mexican workers in the same month last year, when an inflow of 3.918 million dollars was registered. But when compared with the monthly rhythm of remittances in 2022, a moderation is observed that leaves recipient households with the lowest income since February of last year.

The information of Banxico It specifies that the aforementioned transfers originated in 11.8 million transactions with average shipments of 374 dollars.

The average turnover received by the 4.4 million households during January was also the lowest registered in 12 months.

The economist for Latin America at Goldman Sachs, Alberto Ramos, explained that the profile of moderation in the United States economic activityas well as last year’s high base of comparison, could lead to a moderation in remittance flows to Mexico for the coming quarters.

He recalled that the clear drivers of remittances to Mexico during the past year was the solid dynamics of the US labor market.

Information from Banxico shows that during January of this year, 99% of remittances arrived through electronic transfers, that is, 4.362 million dollars of the total remittances were received electronically.

In the first month of the year, remittances in cash and kind as well as money orders were still received, which represented 0.7 and 0.3% of the total monthly flow.

Data from Banxico show that in the last 12 months, that is, from January of last year until now, the accumulated flow of income from remittances amounted to 58.998 million dollars. This amount exceeded the accumulated amount for 12 months in December, which was 58.510 million dollars.