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Mexico Remittances Fall for Sixth Straight Month as September Inflows Drop 2.7%

The downturn reflects tougher U.S. migration enforcement alongside a new 1% tax on cash remittances.

Overview

  • Banco de México reported September remittances of $5.214 billion, marking a sixth consecutive year‑over‑year decline and a 6.5% drop from August.
  • January–September inflows totaled $45.681 billion, down 5.5% from a year earlier for the weakest nine‑month performance since 2013.
  • Analysts attribute the slump to stricter U.S. enforcement and policy changes including the cash‑transfer levy, while Mexico has launched a reimbursement program for the 1% charge.
  • BBVA now projects about $61 billion for full‑year 2025, which would be the first annual contraction in roughly 13 years and a headwind for household consumption after remittances helped keep about 1.09 million people out of multidimensional poverty in 2024.
  • Electronic transfers accounted for 99.2% of inflows and roughly half were withdrawn in cash, and despite the national fall some states such as Chiapas, Oaxaca, Puebla, Guerrero, Veracruz and Morelos posted gains year to date.