NEW YORK.- Remittances play a crucial role in the Mexican economy, and there are five states in the United States that concentrated more than half of the remittance of funds to Mexico during the year 2022.
According to Bank of Mexicothe five entities that stood out in this financial flow are:
California: Leading the list, this state channeled a total of 18,432 million dollars to Mexico in remittances. Texas: Following closely, Texas contributed 8,419 million dollars in remittances to the neighboring country. Minnesota: This state surprised by occupying third place, sending 4,708 million dollars to Mexico. Illinois: It was not far behind, sending a total of 4,304 million dollars in remittances. New York: Closing out the top five list, New York contributed $3.947 million in remittances.
These five states represent 52.6% of the total remittances received by Mexico in 2022.
It is important to note that both California and Texas border Mexico, making them preferred destinations for Mexican migrants.
On the other hand, Minnesota, Illinois, and New York are home to sizeable communities of Mexican origin, contributing to the significant amount of remittances sent from these states.
Remittances from the US to Mexico register historical records
The flow of remittances from the United States to Mexico has experienced a notable increase in the last five years.
In 2018, remittances reached 33.286 million dollars. However, in 2022, this figure rose significantly to 58,497 million dollars, representing an increase of 74.3%.
This increase in remittances is attributed to several factors, including the robust US economy, the growth of the Mexican population on US soil, and the adoption of new technologies that facilitate the process of sending money.
Remittances continue to be an essential source of income for Mexico, representing 3.5% of the country’s Gross Domestic Product (GDP) during 2022.
These financial flows not only have an impact at the individual level, but also play an important role in the economic stability of Mexico as a whole.
What are remittances?
Remittances are money transfers that migrants send from a host country to their countries of origin, with the purpose of supporting their relatives and loved ones who remain in their place of origin.
These transfers can be sent through various channels, such as formal financial institutions, money transfer services, and online platforms.
Remittances represent a significant source of income for many Mexican families. Many households rely on these transfers to cover essential expenses such as food, housing, education, and health care.
Remittances of dollars received by Mexico contribute to the economic stability of the country by providing a constant flow of foreign currency.
Remittances have a direct impact on poverty reduction by raising the standard of living of receiving families. These transfers make it possible to improve living conditions, access basic services, and provide educational and health opportunities.
In some cases, remittances can be used as an investment in productive activities, such as the creation or improvement of small businesses. This can have a positive effect on job creation and local economic growth.
Remittances can also boost domestic consumption in Mexico. When families receive cash transfers, they are more likely to have the ability to spend on goods and services, which can have an impact on the local economy.
In rural areas and regions with little economic diversification, remittances can be a crucial source of alternative income. This can help mitigate dependency on specific economic activities.
It may interest you:
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Since May 1, a system began to operate in the United States to send remittances to Mexico at low cost that only requires that both sender and recipient have a Broxel-compatible card, which is endorsed by a financial institution of the Mexican government.
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“The idea is that money can be sent without having to go to a remittance company,” explains Diana Vázquez, community consul at the Mexican Consulate in Houston.
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According to the consul, the only thing you need to start benefiting from this process that promises to be more agile and without intermediaries is to obtain the Financial debit card for Well-being, from the Government of Mexico.
Crédito: GettyImages.
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It is necessary that both the person in the United States and the person who receives the money in Mexico have this debit card.
Credit: Samuel Toledo,
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According to the authorities, this card can be requested at any Mexican consulate in the United States or through the website: broxel.com/us/bienestar-es
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The consul clarifies that the activation is done digitally, through the page. With the card you can send up to 2,500 dollars from the United States to Mexico, on a daily basis, and only $3.99 will be charged
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“The exchange rate will be determined according to the date on which the money is sent,” the consul clarified.
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To activate or apply for your card, all you need is: A valid address in the United States. Email address. Official Mexican or US ID. Cellphone number. Valid identifications: Mexico: IFE/INE, passport, driver’s license or consular registration. USA: Passport or driver’s license.
Crédito: GettyImages.
2023-08-24 20:56:12
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