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Expatriates Sent Record Amount of Remittances to Mexico in 2016

ISSN:1054-8890
LADB Article ID: 80210
Category/Department: Mexico
Date: 2017-02-15
By: Carlos Navarro

Policies on immigration recently enacted or proposed by US President Donald Trump and his allies in Congress are beginning to have a major effect on remittances to Mexico from Mexican expatriates. Trump, who won election in November 2016, has threatened to tax remittances as a way to finance the construction or expansion of a huge barrier along the US-Mexico border, which he said would discourage undocumented immigrants from crossing into the US. Trump frequently mentioned a tax on remittances during his presidential campaign, and his election resulted in an avalanche of money transfers to Mexico by expatriates during November and December. Because of this, remittances rose by nearly 25% in November and by 6.2% in December, bringing the total for 2016 to a record US$26.9 billion, the Mexican Central Bank (Banco de México, BANXICO) reported. The remittances involved almost 92 million money transfers, with the average remittance estimated at US$295, a slight increase from 2015, BANXICO reported. More than 95% of the funds were sent from the US, and slightly more than 1% from Canada. The previous record was set in 2007, with expatriates sending back just over US$26 billion. The total that year surpassed estimates indicating that remittances would reach US$25 billion

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