Strength of the peso reduced income from remittances: BBVA

Mexico City. The strength of the peso against the dollar caused the flow of resources that families obtain from the income from remittances sent to them by their relatives abroad to fall by 15 percent during March, BBVA announced.

This morning, the Bank of Mexico (BdeM) reported that during March the remittances received by the country broke a streak of 46 months with annual increases, after they registered an annual drop of 3.3 percent, reaching 5.21 million dollars. .

With the data, BBVA stated, remittances culminate the 46-month streak of growth that lasted between May 2020 and February 2024.

During this period of almost four years of frenzy, he said, remittances increased in annualized terms from 38,800 to 63,600 million dollars, which is equivalent to a total growth of 64.1 percent in the 46 months.

He explained that the final effect on the pockets of families receiving remittances in the country is even greater, because together with the drop in dollars registered in remittances and the inflationary factor, it must be considered that March was one of the months in which that the price of the US dollar fell below 17 pesos, which translates into fewer pesos at the time of collection.

“Thus, in March 2024, with an average exchange rate of 16.84 pesos per dollar, Mexico received nearly 84.6 billion pesos in remittances, which is equivalent to a contraction of 15.2 percent in real terms in income from this concept for receiving households,” said BBVA.