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.