Trump’s Rhetoric, U.S. Economy Boost Mexican Remittances
Last year was the year with the largest amount ever registered of remittances in Mexico, according to its central bank’s last report.
Mexican financial experts say this comes as a result of the American economy’s growth and the Trump administration’s policies.
In 2017, Mexican migrants sent back home almost $29 billion (6.6 percent more than 2016), hitting a record high.
“This has very much to do with the growth of the United States economy,” said Enrique Díaz-Infante, an analyst and director of of the financial sector of the Center of Studies Espinosa Yglesias, based in Mexico City.
Díaz-Infante explained that Mexican immigrants’ income improves as labor increases in the U.S., the main source of remittances. But uncertainty brought by president Donald Trump’s ideas on building a border wall, taxing remittances and renegotiating trade have also pushed dollars out to Mexico.
“The immigration policy in general is affecting the behavior of the Mexicans,” said the analyst.
Díaz-Infante said the raise of remittances speak of a win-win situation for both countries: the U.S. becomes more productive and Mexico gets more income.
“Well, I mean, it is sad to say this but it is a fact that Mexican labor is cheap labor,” he said. “But remittances have a very important impact on reducing poverty in Mexico”.
The Peso’s devaluation against the dollar, as well as a low inflation in Mexico, have also contributed to those who get remittances by giving them more buying power.