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restrictions or taxes that the new US president might impose
Remittances: sources and means of transfer
In 2016, 95.4% of remittances to Mexico came from the United States, followed by Canada with 1.1% of the
2015 and surpassing the previous record in 2007 of US$26.06 billion. Almost all of those remittances (95.4 percent) came from the United States.
At least part of the increase seems to have been prompted by fear; an estimated US$420 million in additional remittances resulted from Mexicans living in the Unit- ed States who fear possible restrictions or taxes being imposed by the new president.
BANXICO’S JUGGLING ACT
The close ties between the Mexican and U.S. economies have manifested in the for- eign exchange market in recent months. The peso saw a steady weakening against the U.S. dollar ov3e/r7 the past two years, on concerns about the more subdued growth outlook and rising deficits. That weaken- ing turned into a sharp plunge in the af- termath of the U.S. presidential election,
pushing the peso to historic lows. The cur- rency has since recovered, its value going up by 16 percent in 2017 and hitting a new high on June 26. “Clearly the exchange rate was not reflecting fundamentals at the beginning of the ywewawr.b,b”vasreaseyasrchJ.comsé Anto- nio Meade, Mexico’s Secretary of Finance. While that relationship has stabilized, he believes further appreciation is possible. Nevertheless, once serious trade talks get
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total. Almost all remittances (97.8%) are sent by electronic transfer, and 35.3% of them are paid in Mexico through a bank.
REMITTANCES: SOURCES AND MEANS OF TRANSFER
Figure 3
FAMILY REMITTANCES TO MEXICO, 2016 (US$ MILLIONS AND % OF TOTAL)
Family remittances to Mexico, 2016 (US$ millions and % of total)
Country of origin
939.5 (3.5%)
Canada
288.6 (1.1%)
United States
25,742.2 (95.4%)
Means of transfer
Money Orders
159.2 (0.6%)
Cash and payment in kind
435.8 (1.6%)
Electronic transfers
26,375.2 (97.8%)
Receiving institution
Non-bank institution 17,436 (64.7%)
Banks
9,534 (35.3%)
Others and unspecified
In 2016, 95.4% of remittances to Mexico came from the United States, followed
by Canada with 1.1% of the total. Almost all remittances (97.8%) are sent by
electronic transfer, and 35.3% of them are paid in Mexico through a bank.
Source: BBVA Research based on Banco de México data
Source: BBVA Research based on Banco de México data.
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