Tags: mexico | remittances | cash | forex

Mexicans Abroad Send Home Record $2.72 Billion in April

Mexicans Abroad Send Home Record $2.72 Billion in April
(Ricochet69/Dreamstime)

Friday, 01 June 2018 03:48 PM

Mexicans living abroad sent home a record amount of cash in April, official data showed on Friday, and analysts expect further growth because of a historically tight U.S. labor market and worries about President Donald Trump's crackdown on illegal immigration.

Remittances, one of Mexico's top sources of foreign currency, rose nearly 18 percent in April, year on year, to $2.72 billion, the highest monthly total in records going back to 1995, central bank data showed.

Analysts noted that the increase was likely partly fueled by a nearly 4 percent slump in the peso during the second half of April. Migrants tend to send back more when the peso weakens, since their dollars buy more local currency back home.

The peso sank in May to a 15-month low and a tight U.S. labor market should support "solid" remittances in the near term, Goldman Sachs said in a report.

On Friday, the U.S. Labor Department reported an acceleration of job growth in May and a drop in the unemployment rate to an 18-year low, potentially creating a labor market squeeze that could force employers to pay higher wages to find qualified workers.

The Trump administration is examining ways U.S. industries might hire more immigrant workers on a temporary basis, White House economic adviser Larry Kudlow said on Friday.

Francisco Flores, an analyst at Mexican bank Banorte, said in a note that Trump's hard-line migration policy had likely been driving up remittances since last year since workers may fear they will be deported and send more savings back home and that those fears should keep driving flows going forward.

© 2019 Thomson/Reuters. All rights reserved.

   
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Mexicans living abroad sent home a record amount of cash in April, official data showed on Friday, and analysts expect further growth because of a historically tight U.S. labor market and worries about President Donald Trump's crackdown on illegal immigration.
mexico, remittances, cash, forex
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2018-48-01
Friday, 01 June 2018 03:48 PM
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