Remittances to Mexico break records driven by family ties

The money sent by immigrants to Mexico is increasing to break monthly records, just as that country’s economy is in trouble from the coronavirus pandemic.

In the first seven months of this year, the flow of remittances amounted to $ 28,000 million, almost 24% more than in the same period last year, according to the Bank of Mexico.

In this month of July, remittances to Mexico reached $ 4,540 million.

What is driving them higher?

Family ties in times of crisis from the prolonged pandemic, say experts as well as homemakers and construction workers in Dallas.

“Among Mexicans, family ties are very deep, and those ties do not seem to fade … even after a decade or two,” said Andrew Selee, president of Migration Policy Institute.

About 11 million Mexican immigrants live in the United States, and almost 60% arrived here more than 20 years ago, according to MPI.

A large percentage of them are here legally, Selee noted.

It is estimated that around half of Mexican immigrants are in the United States legally and the rest would lack the necessary documents.

The US economy recovered faster after the pandemic crash and that spread to more established Mexican immigrants, Selee noted.

“Mexican immigrants in the United States have a greater capacity to send money home because they are working and their families are not yet,” he said.

“Mexican immigrants have shown remarkable regularity in sending remittances, even after having spent one or two decades in the United States.”

But the time will come when the financial obligations of established Mexican immigrant families will diminish, he said.

The growth in remittances to Mexico and other Latin American countries that have strong migratory flows to the United States is “simply historic,” said Manuel Orozco, a remittance expert at Creative Associates International.

The volume of remittances to Guatemala, Honduras and El Salvador has grown between 25% and 30% this year.

In a survey titled “Commitment to the Family,” the Inter-American Dialogue research center found optimistic expectations of generosity among 1,100 immigrants from eight countries.

But the results have exceeded expectations, Orozco stressed.

Some of the money would be sent south to pay debts to the coyotes, Selee theorized.

“Right now I’m not sure how many Mexicans still use coyotes to try to cross,” Selee said.

“They probably do, but Mexicans are more familiar with crossing the border and are much more informed about it by their family and their community.”

Myrna Méndez from Dallas is representative of the many Mexican immigrants who send money to her family in Mexico.

She attributes the growth in remittances to the pandemic.

“The pandemic is something that we have never experienced,” Méndez said. “They say you have to tighten your belt and help.”

That’s what she does.

Thanks to technology, sending money to a sick brother in northern Mexico is even easier. The amounts can reach $ 500 when the family has medical expenses.

Her own family in Dallas lives off the salary of her husband, who has a steady job as a construction worker in the relatively healthy North Texas economy.

“We are blessed to help others,” said Méndez, who has been in the United States for more than 25 years and is a US citizen.

Construction worker Rubén Salinas commented that in North Texas there is abundant work for immigrants, documented or not.

That increases the flow of money to Mexico and countries like Honduras, said Salinas.

“Most factories and companies are employing thousands of immigrants, and yet they are not enough,” said Salinas, who was born in Mexico and sends money to his family in the state of San Luis Potosí.

This has raised a construction worker’s wages from $ 10 an hour to $ 20, he said.

For the same reason, remittances have increased.

Salinas estimates that immigrants send an average of $ 500 a month, and in these good economic times in Texas they can send up to $ 1,000.

“They are sending because there is a lot of work here,” he said. “The work here is excellent.”

In July, the unemployment rate in Dallas-Fort Worth fell to 5.3% from the pandemic high of 12.5% ​​in April 2020, according to the Bureau of Labor Statistics.

Texas has the second largest population of Mexican immigrants, and the state also has the second largest volume of remittances.

The pandemic has hit the Mexican economy harder than the United States, said Jennifer Apperti, manager of the Mission Foods Texas-Mexico Center at Southern Methodist University.

“Unfortunately many people lost their jobs during the pandemic in Mexico,” Apperti said.

“Some people have been increasing the amount of money they send to their families to help alleviate this situation.”

In July, 11.6 million people sent money to Mexico, an average amount of $ 390 for each transaction.

Using electronic payment systems like PayPal has made it easier for younger generations to send money home, he said.

“Having grown up seeing many tragedies like natural disasters, earthquakes and floods, I believe that in times of great need people tend to come together to help each other,” said Apperti, who has dual citizenship, Mexican and American.

Apperti also highlighted that studies carried out for the Texas-Mexico Center show that another increase in remittances could have occurred due to the weakening of the peso against the dollar from February to April, which makes the money in Mexico yield even more.

Salinas agreed with that assessment.

“When the peso goes up to more than 20 for 1 (dollar), a lot of people start sending more. The dollar is valued more, ”he said.

–