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Mexico's Remittances Return to Modest Dollar Growth

The rebound in U.S. dollar inflows risks squeezing household budgets because peso appreciation and inflation have cut the value of transfers in pesos.

Overview

  • Banco de México data show July 2026 remittances of $5,571 million, a 3.0% year‑on‑year rise, and a January–July total of $36,349 million, up 3.1% versus 2025.
  • The recovery owes mostly to larger amounts per transfer rather than more transactions, with the average per operation rising to $426 while the number of July operations held near 13.1 million.
  • Electronic transfers dominate the flows, accounting for 99.1% of remittance inflows in January–July 2026, and seasonally adjusted monthly receipts rose 0.5% from June to July.
  • Recipients have seen falling peso receipts and buying power for 14 consecutive months because a stronger peso and ongoing inflation reduce the peso value of dollar remittances.
  • Remittances remain a key external income source for Mexico—about 4% of GDP and the world’s second‑largest recipient after India—and future trends depend on U.S. migration policy, U.S. labor market conditions, exchange rates, and possible changes in U.S. financial‑system rules.