Remittances to Mexico Rise to Record High in MayBy Andrea Villar | Thu, 07/01/2021 - 14:27
In May, remittances to Mexico rose to their highest monthly level since records began in 1995. The total amount received amounted to US$4.514 billion, surpassing the US$4.157 billion reported in March, Mexico’s Central Bank (BANXICO) data showed on Thursday. According to the bank’s board of governors, there are two factors behind the jump in remittances in May: Mother's Day and the economic rebound driven by the reopening of the US economy.
Transactions, led by the US, likewise hit a record high and rose 15 percent year-on-year, their second month in a row of double-digit growth, totaling 12.3 million. According to BANXICO, between January and May, the monthly average of transactions amounted to 10.6 million. The average amount per remittance was US$366, 14.3 percent higher than the US$320 dollars sent in May 2020. It was, however, lower than the US$375 that were sent on average in April this year. In 2020, remittances sent to Mexico totaled US$40.61 billion, 11 percent higher than the previous year.
In an article last week, Country Manager of Bnext Cristian Huertas wrote for Mexico Business News that although the average remittance is about US$300, “when you dig into the data you will find that the vast majority of transactions are just over US$100.” He mentioned that in most cases traditional remittance companies charge fees that can amount to as much as US$10. In light of this, he added, a wave of fintech players have been launching more competitive proposals.
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